To those who thought FMCG goes only one way, investing is super easy. buy quality FMCG at any valuations, do check history, though, its one of best sectors, it does test lot of patience

A thread of strength in the market.

An analysis which I did during Covid crash with @MashraniVivek on which sectors and stocks were strong, and we did pick pharma, chemical early cycle. Though we do not know where market is heading, doing such exercise always helps to find

strength when market bottoms. Of course, it requires much more reading and conviction building and hence should be taken only as a starting point. Here is how this list has been generated
1. Pick top 500 companies
2. Find list of companies which have fallen < 10% in last 3 months

Totally 61 out of 500 stocks.
This is how the sectors come up.
✍️Auto and Capital Goods stand out
✍️Do not ignore defence for sheer count as there are few companies in sector
✍️Next pocket looks like few beaten down sectors/stocks where may be value is emerging - FMCG, Pharma

List of stocks - Auto tops the list followed by capital goods, bank and financial, pharma and defense. Disc: I am biased towards auto n financials (keeping FII selling risk aside). Also, this is still a watchlist activity and I am not acting on it except being

invested in few auto n banking names. Please do your own due diligence. I am not a registered investment advisor and this is not a recommendation. Follow @ScientificInve6 and our Youtube channel for more such

One of biggest insight I can give to long term investors - Never never invest in stock where monthly RSI14 is <50, stock attempts to cross it but stays below it. Have seen enough charts to conclude. Probabilities wont be in favor and can see multi year time correction

1/1 The statement might look simple but has lot of nuances to understand. The best way is go open charts and explore. Any session I take my focus is on taking one simple statement n bring all nuances. May be sometime will do for this too but you need to explore it yourself.

2/2 Must have some basic knowledge of time frames, longevity of sata etc etc technical analysis to consume it fully. Explore it, it's a beautiful world.

#BSE_SMALLCAP

Sharing my views since many are looking for the top; which nobody can tell☺️

The only thing I am watching on this index is the weekly chart w/ 10 EMA.

A close below 10 EMA I will turn cautiously bullish.

#BhatTip
"Simple is not easy"

Understanding HIGH & LOW VIX

VIX at 16: If you check today's IV behaviour, they were not spiking much even with decent delta move in BNF. The movement was subtle, giving some time to adjust. So someone having good adjustment mechanism can stay in the game longer.

1/

VIX at 20: The same delta move will be more fierce, coupled with rise in premiums. When premiums rise with movement, then the adjustment cost increases exponentially. The premiums can fall back at EOD, but the damage is done if caught in the spike.

2/

After talking to few traders, their backtest result was in favor of high VIX of 2020, rather than 2017-19. The key flaw in the backtest were the adjustments which are not easy to calculate. Combination of high theta & fixed SL during high VIX, the IV crush is cashed at EOD.

3/

Neutral option sellers who don't adjust & have fixed SL on a static straddle will not be able to benefit highly in low VIX. The straddle which moves away from ATM will increase no matter what. But if we keep on rolling our strikes, then we get good realisation of theta.

4/

I have made majority of my profits in option selling when VIX was at 13-15, mostly just relying on my adjustments. Since 2020 with high VIX, adjustments stopped working because of increase in the frequency of delta + IV spike combos & so had to shift to directional trading.

5/

It's the weekend!

Grab a cup of coffee, in this thread I will explain

1. Peter Lynch's Six Categories of Stocks
2. How to identify the type of stock you own?
3. How to think and decide about the runway for growth of a company?

Lets dive right in.

For those who do not know (I doubt there will be many), Peter Lynch is one of the most successful fund managers of all time.

He managed a fund called Magellan at US Investment Giant Fidelity Investments and during his 13 yr tenure, he delivered an average CAGR of 29.2%.

Sadly the fund couldn't keep up post Lynch's retirement and his successors weren't able to keep up with his returns.

That's how good Lynch was!

In 1989, a year before retirement, Lynch wrote and published a book called 'One Up on Wall Street'.

Almost 32 years later, the teachings of the book remain relevant.

(Highly recommended read)

Chapter 7 of the Book Titled
"I've Got It, I've Got It - What is It?"

talks about the need to classify stocks.

Peter's argument is that you need to know what kind of stock you hold in your portfolio.

Not all stocks are the same - and he is right!

From HDFC Bank to Kotak to Bajaj Finance to Canara Bank!

How did lenders perform in Q4FY21?🤔

A thread🧵on the Banking/NBFC results

Hit "Retweet" to educate maximum Investors

Lets go👇

(1/24)

HDFC Bank:Stable

🏦Profits grow at 18.2%
🏦Asset quality remains stable with credit costs at 1.65% for the quarter
🏦CAR at 18.8%
🏦Gross NPAs at 1.32% vs 1.38%
🏦HDB Financial returns to profits
🏦Watching carefully on how the second wave will turn out

(2/24)

ICICI Bank Results:-Stable

🏦Operating profit grows at 20%
🏦Covid-19 provisions increased by 1000cr to 7475cr
🏦Deposits grow by 21%
🏦Net NPA declines to 1.14%
🏦Capital Adequacy at 18.06%
🏦Retail loan growth at 20%
🏦Corporate loan growth at 13%
🏦Dividend-Rs 2/share

(3/24)

Cholamandalam Investment:Stable

🏦Disbursements decline 13%
🏦Loan loss provisions at 1.4%
🏦Profits up 29%
🏦Positive on Auto financing

(4/24)

HDFC Ltd:Strong

🏦Loan disbursements grow 60%
🏦Month of March had highest ever disbursements
🏦Gross NPAs at 1.98%
🏦Individual loan NPAs at 0.99%
🏦Non-Individual Loan NPAs at 4.77%
🏦Dividend of Rs 23/share
🏦PAT grows by 19%

(5/24)