Better 2019

190101 – Wishing you all a Very Happy Calendar New Year 2019 and may all the days till next year are exciting, profitable and memorable. I, in my video recently had promised to mention few investment ideas in the article and will do so today. To stay connected with us on all social media platforms Click Here.

I know most of you must be busy on this day and hence will not make this post very long. I promise you will be able to read the whole write-up in under 11 minutes. Not all are sitting in office today like me. 😦

In the video, I had mentioned a line that ‘My gut feeling says we may hit a new high before Lok Sabha elections’ Not necessary the gut feeling is high but most probably 2019 will be better than 2018.

Look at the Index performances in 2018:

Index 29-12-17 31-12-18 Change %tage

Sensex

34057 36038 +2011 5.90%

BSE MidCap

7781 6696 -1085 (13.94%)

BSE SmallCap

19231 14707 -4524 (23.52%)

The Sensex delivered marginal 6% returns. Still, not all investors made it, why? Because the movement was based on just 5 companies. The silver lining is that world markets did much worse. India was among top performers with this bad return. The movement was very shallow. MidCap Index delivered pretty bad and SmallCap Index was a disaster! When Index itself is down this much, no wonder most investors are seeing their portfolios in deep red.

This builds the base for a better the year 2019, in spite of elections around the corner. You can read the previous two posts to read the views on elections.

Volatility will still be seen and hence I would publicly mention ideas which may not see huge volatility. MarketFastFood clients get updates instantly but the public at large who are acting upon reading this post should go safer. Any further update would be posted in the comments box by me in future.

Things are improving constantly, as per RBI’s Stress Test of the banks, the PSU banks are getting stronger. Buy SBI at CMP of around 295 and hold it till I update again.

The loans which were written off from the balance sheet are now finding their way in again with NPA resolution mechanism. Some people got misguided when politicians said loans are being waived off of the rich, there is a big difference between waived off and written off.

The GST has almost settled fully. With the liquidity situation improving in the system and elections around the corner, the rural economy may do well. Elections see a lot of spends and hence the economy benefits. GST will be a game changer and stocks like ITC in the FMCG sector can possibly do well. You can Buy it at this CMP of around 281 and just hold on for some time. Compared to other peer group companies the stock looks cheap as well.

The third stock I would like to choose at this juncture is Cipla at CMP of around 521. You can aim for a price of 600+ and then ask me again what to do.

In the recent Fb Live video, I had said that don’t get misguided by what news you see on social media. It’s a platform right now used by vested interests to spread fake news about the economy. What has been said in MFF articles till now have gone the right majority of the times.

We at VRIDHI will continue to help investors who are ready to listen to the facts with an open mind. Only this can make you money and not believing in the fake news.

Take it from us, the overall quality of the economy has improved and markets will also follow suit and hence look at India with a positive mindset.

When you visit www.vridhi.co.in on a laptop or desktop, you can subscribe for email alerts on future articles. If you are browsing on phone then scroll to the bottom for the ‘follow’ button. Do stay connected with us. Click Here for all modes.

Happy 2019

Vivek Karwa

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