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Avoid Buying on Dips! Use Logic Before Investing

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“Tradition becomes our security, and when the mind is secure it is in decay” – Jiddu Krishnamurti.
Demonitisation has benefits in years to come however at present it has pinched the pockets and patience of the common man. The traditional analysts suggest the traditional way of ‘Buying on Dips’. And even today they stick to it when ‘Aam Aadmi’ is falling apart. Dynamic Levels Research Analysts have clearly stated to leave the traditional analysts unheard and use logic before investing.

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Avoid Buying on Dips! Use Logic Before Investing

  1. 1. Avoid Buying on Dips! Use Logic Before Investing “Tradition becomes our security, and when the mind is secure it is in decay” – Jiddu Krishnamurti. Demonitisation has benefits in years to come however at present it has pinched the pockets and patience of the common man. The traditional analysts suggest the traditional way of ‘Buying on Dips’. And even today they stick to it when ‘Aam Aadmi’ is falling apart. Dynamic Levels Research Analysts have clearly stated to leave the traditional analysts unheard and use logic before investing. The markets are falling. People are in state of utter panic and fear. However, Dynamic Analysts suggest the investors to go against the stereotype of buying when markets fall by 200-300 points. It is a ‘trap’ they say. They state that one should wait until FIIs show buying which are currently on a selling spree. Logic 1: In the month of October, FIIs were selling 5770.19 in cash. In November, they were selling with an alarming figure of 19982.37. This has majorly dragged
  2. 2. down Nifty (spot) 10 per cent from 8807 in October to 7916 in mid- November. The investors shouldn’t be trapped by the relief rally and wait until FIIs show buying of 1000 cr in a single day. Below shows a list of stocks which have fallen above 30 per cent however as per Dynamic Analysts one is not supposed to buy at present: Stocks Fall (%) DLF -30.87 GODFREY PHILLIPS -30.89 KIRLOSKAR ELECTRIC -31.84 CIL -32.72 CENTURY PLY -32.74 STORE ONE -33.4 NITCO -34.04 NOIDA TOLL -35.21 8K MILES -36.14 SPENTEX INDUSTRIES -37.58 DELTA CORP -38.28 KAKATIYA CEMENT -39.93 ORIENT CEMENT -41.23 UGAR SUGAR -44.49 ATN INTERNATIONAL -54.55 SUNIL HITECH -61.88 Logic 2: The investors also have to keep an eagle eye on the December quarter results of the companies. The reason is clear - demonetization. With the help of demonetization the results will have a much clear picture since the companies will fail to hide their actual income.
  3. 3. Greed and Fear: At this stage when the stock market is dipping the investors have to keep their cool and not get trapped in the vicious cycle of ‘Greed and Fear’. There is an old saying on Wall Street that the market is driven by just two emotions - fear and greed. Albeit, this is an oversimplification, it can be true many a times. Succumbing to these emotions might have a profound and detrimental effect on the investors' portfolios and the stock market. Dynamic Levels Research Analysts help you minimize your greed and overcome your fear, thereby doing wise investing. Disclaimer The investment advice or guidance provided by way of recommendations, reports or other ways are solely the personal views of the research team. Users are advised to use the data for the purpose of information and rely on their own judgment while making investment decision. Dynamic Equities Pvt. Ltd - SEBI Investment Advisory Reg. No.: INA300002022 Disclosure Dynamic Equities Pvt. Ltd. is a member of NSE, BSE, MCX SX and a DP with NSDL & CDSL. It is also engaged in Investment Advisory Services and Portfolio Management Services. Dynamic Commodities Pvt. Ltd., associate company, is a member of MCX & NCDEX. We declare that our activities were neither suspended nor we have defaulted with any stock exchange authority with whom we are registered. SEBI, Exchanges and Depositories have conducted the routine inspection and based on their observations have issued advise letters or levied minor penalty on for certain operational deviations. Answers to the Best of our knowledge and belief of Dynamic/ its Associates/ Research Analyst: DYNAMIC/its Associates/ Research Analyst/ his Relative: Do not have any financial interest / any actual/beneficial ownership in the subject company. Do not have any other material conflict of interest at the time of publication of the research report Have not received any compensation from the subject company in the past twelve months Have not managed or co-managed public offering of securities for the subject company. Have not received any compensation for brokerage services or any products / services or any compensation or other benefits from the subject company, nor engaged in market making activity for the subject company Have not served as an officer, director or employee of the subject company Article Written by Salman Hashmi

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