Friday, May 01, 2020

Is the market out of woods?

No, the market is not out of woods. There is no long term positive environment for the business as of now.

The current PE of the Nifty is 22.35, which is too high for current environment.

Retail participation seems to be very high. March was good time and may be April, but not now. 

The market is overbought and rich at the moment and should be a crying signal for staying away. Wait till September, when the winters set in Northern Hemisphere and when the market is back to level around 18-20 range.

Advisory 
  1. Keep portfolio tech focused
  2. Consumption story is strong 
  3. Staples within consumption story
  4. Avoid CAPEX heavy 
  5. No new investment, better exit around peak summer early monsoon - July / August 

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