Stocks
Stocks, which are also commonly referred to as "equities," represent a form of security that entitles stockholders to a portion of ownership in a company. This ownership stake offers shareholders the possibility of earning profits, especially when the company shows strong performance both in technical and fundamental aspects.
Our focus spans the extensive landscape of the Indian stock market, with more than 2,000 companies registered on the National Stock Exchange (NSE). We provide our clients with investment recommendations from both the NSE and Bombay Stock Exchange (BSE). It's important to note that our trading recommendations do not have a predetermined validity period. The duration of holding a trade can vary; it may be as short as a day or extend to a week or more, depending on our assessment and market dynamics.
We adopt a cautious approach to trading. Specifically, we do not engage in intraday trades, nor do we make trade recommendations on a daily basis. Our strategy is to patiently wait for robust and promising opportunities in the market to guide our clients toward potentially profitable investments.
Risk Involved
The stock market is characterized by its volatility, with stock prices susceptible to rapid fluctuations. These changes are often influenced by a variety of factors, including shifts in the economy, geopolitical events, specific news related to companies, and the overall sentiment of investors. Such fluctuations can lead to significant financial gains or losses for investors.
The performance of a company is a key determinant of its stock price. When a company encounters poor performance, legal issues, or financial troubles, its stock price is likely to fall, potentially resulting in financial losses for its investors. Additionally, variations in interest rates also have a substantial impact on both the stock market as a whole and on individual stocks.
Another important aspect to consider is the influence of financial institutions such as Foreign Institutional Investors (FII), Foreign Portfolio Investors (FPI), and Domestic Institutional Investors (DII). Their activities, particularly short selling, can contribute to negative trends in stock prices. Such actions by these institutions can significantly sway market dynamics, often leading to downward pressure on stock values.