Which Sectors are expected to perform better as compare to Index?

Key benchmark indices Nifty & Sensex rallied 2.7-2.45 percent during the week as investors cheered the improved macro-economic data like inflation & decent growth in merchandise export in June and the RBI norms that will help infrastructure firms and affordable housing projects get cheaper loans from banks.

Last week, S&P BSE Sensex gained 617.21 points or 2.46% to 25,641.60 while CNX Nifty rose 204.30 points or 2.73% to 7663.90 while Mid-Cap Index underperform the index and Small –Cap Index outperformed index with gain of 1.32% and 5.08% respectively.

The annual rate of inflation based on the combined consumer price indices (CPI) for urban and rural India eased to 7.31% in June 2014, from 8.28% in May 2014.  India's merchandise exports jumped 10.22% to $26.48 billion in June 2014 over June 2013 and Imports rose 8.33% to $38.24 billion in June 2014 over June 2013. The trade deficit stood at $11.76 billion in June 2014, which was higher than trade deficit of $11.28 billion in June 2013.

Going forward in absence of any major macroeconomic data FIIs investment trend, progress of monsoon, trend in global markets and next batch of Q1FY2014-15 earnings will dictate near term trend of Indian bourses. Among prominent results, RIL, UltraTech Cement, HDFC, HDFC Bank, Idea Cellular, Asian Paints, Axis Bank, Cairn India, Wipro, ACC, Ambuja Cements & Punjab National Bank will announce their April-June 2014 results in next week.  Next week Metal stocks would be in focus as Markit Economics will announce China’s PMI for July’14. 

In short term Nifty is seen moving in a range of 7550-7750 points while sectors like IT, Banking (Pvt.), Metal, Insurance & Automobile are expected to perform better as compare to Index.

Index Stocks: Hero Motocorp, TCS, HCL Tech, ICICI Bank, Kotak Bank, Tata Steel & Coal India  

F&O Stocks: CESC, Petronet LNG, Exide Inds & LT Finance 

Cash Stocks:  Nestle, Britannia, Ingersol Rand, HIL, Dredging Corp, Max India, Prec Wire, Aries Agro & IL&FS Trans.

Key data to watch (Domestic):

·         RBI monetary policy review on 5 August 2014.

Key data to watch (World):

·         CPI & Existing home sales data on 22^nd July 2014

·         Jobless Claims & New Home sales data on 24 July 2014

·         China's HSBC PMI index for July on 24 July 2014

·         Durable goods orders on 25 July 2014

·         GDP & FOMC Meeting announcement 30^th July 2014.

How patience and analysis play a major role in the market?

Basic information of the share market and getting the perfect time to invest in the stocks both plays a very important role in the market. You need to clear all your confusions that you have on your mind about the shares and stocks present in the market.  If you think that investment in the stock market does not require any research then you are wrong. You have to make the best efforts to know how you can earn good income by selecting the right stocks from the market. It not only requires oodles of patience and discipline, but also a great deal of research and a sound understanding of the market, among others. 

 If you find that you have committed a small mistake in the market then you would have to risk all your money. So it is best to get some time to know the market well so that you are able to research on the different available stocks. You have to look at the market conditions before you wish to invest your money. If the market condition is not favorable then you should avoid making any investment in the market. Things are not very simple to earn good profits and if you make a simple mistake in choosing the stocks for you then you would have to bear a huge loss in the market. You should try to know how patience and analysis play a major role in the market. 

Try to analyze the different stocks

You should be able to differentiate between the profitable and the non profitable stocks in the market.  When you are sure that the stock that you are willing to invest in the market would help you earn good profits then you can invest your money. But you should be aware of the fact that there is always an element of risk that is present in the share market. If you are able to tackle the risks and get the right stocks then you can get rid of your losses. You can read books on stock market or even watch the daily business news where you would be able to get yourself updated on the market. Sometimes you might find that you have lost much of your money in the market but this should not make you think that you would always be unsuccessful in getting the profits from your invested stocks. So try to have some good confidence while investing and also do try to take the best decisions so that you do not have to lose any money in the market by choosing the non profitable stocks.

Keep yourself away from fraudulent websites

You might be interested to go for online share trading in the market. Well this type of trading has become very popular amongst the investors who are able to save much of their time as well as money. This is because one does not need to go out from their place to invest in the stocks in the market.  But you have to know that there are some websites that are not genuine and these websites try to adopt fraudulent means by taking into account all your banking as well as credit card details. So if you happen to give all the details to these websites then you might have to risk all your money. So try to play safe in the online stock market by getting hold of a website that is 100% genuine. It is best to research well on the different websites so that you can know which website would be the ideal one for you to buy or sell stocks online.

Look for your goals during investment

You have to know which type of investment would be the best for you in the market. If you wish you can choose either short term or long term investment in the market depends on your requirement. So all you have to do is to get the perfect timing to invest yourmoney in the market. You would be glad to find that you have taken the best decision to invest in the right or the profitable stocks for you. Thus you have come to know how patience and analysis play a major role in the market.