Watch The Crude Oil Prices

By the time you read this editorial, the exemplary Union Budget 2018 that I expect it to be, would have been already announced and investors across the world would have started analysing the fine prints in the budget. It would be wise for the investors not to reshuffle their portfolios immediately after listening to the budget. It normally takes a week for the markets to discount all the budget news, after which the market takes the directional call. Allow the budget news to sink in and, as the market settles down a little bit, you can take your long-term investment decisions. One can use the budget event to reshuffle the portfolio strategically and get rid of the non-performing stocks. 

The market condition is good and the money flow into the markets is expected to remain steady. Increasingly, there are voices predicting a correction in the markets. Market correction is always a possibility and I hope my investor-friends can use the market correction, as and when it comes, to aggressively buy into equities. I do not think Sensex will fall below the 34,000-mark easily even if there is a correction. What is bothering me at this point of time is the rising crude oil prices. Higher crude oil prices during 2018 may bring down the growth momentum a little bit. I do not see crude oil prices trading higher than $ 75 per barrel, though. 

The quarterly results will be better this season and the overall economic growth will ensure that the markets remain in good shape.

The never-ending quest to beat Sensex, which has delivered returns in excess of 6 per cent in one month, has led us to focus on low-float stocks which have low liquidity. I am sure you will relish our observations on low–float, low liquid stocks and their performance. It can be a rewarding experience to grab those quality low-float, low liquid stocks. 

The IT stocks have helped push the key benchmark index higher in the month of January. The uptick in the IT company’s earnings is heartening for the investors and indeed calls for higher portfolio allocation to the sector. Do read our special report on the sector, explaining the reason behind the strong momentum in the sector. Also, watch out for our two recommendations in the IT sector. 

The Average Directional Index (ADX) is one of the most useful tools for traders. It helps traders gauge the strength of the trend, thus helping them to identify trading opportunities. In our special report titled , “Catching The Trend With ADX”, we have explained in detail how to use the technical tool profitably. Do come back to us with your feedback on this special story. 

The Union budget, no doubt, will set the tone for the markets, but always remember a good stock is a good stock and sticking with quality stocks for the long term can boost your wealth manifold. Hunt for the growth stocks across market capitalisation. Check if any of these stocks are underpriced. Even at these elevated levels in the market, chances are that you will find multiple investment opportunities. The PSU banks are available at throwaway prices. You will not regret including them in your portfolio. 

Happy Investing!