Stock market investor? Here is how to make money in 2021 | earning opportunities
It is expected that year 2021 would set aside all the gloomy rhetoric around mounting worries as the economy returns to normalcy. However, Markets may not show the same kind of ebullience as they have already ran ahead of its fundamentals. Hence, year 2021 may be the period where one would see the stock market and real economy realigning with each other.
How to make money in stock markets in 2021: Nirali Shah, Senior Research Analyst, Samco Securities highlights that Domestic bourses during the week and since late March 2020 have been rising steadily, climbing the wall of worry with a consensus rhetoric that economy is punctured by pandemic, diminishing consumer demand, job cuts, business model disruption, bankruptcies, etc. This has created money earning opportunities aplenty. Regardless of all these Markets have kept the spirit and soared higher, reflecting what lies ahead.
So, how to make money in 2021? Where are earning opportunities?
It is expected that year 2021 would set aside all the gloomy rhetoric around mounting worries as the economy returns to normalcy. However, Markets may not show the same kind of ebullience as they have already ran ahead of its fundamentals. Hence, year 2021 may be the period where one would see the stock market and real economy realigning with each other.
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Beginning of the new year may likely witness a healthy start at least in the initial couple of months wherein union budget, US new government policy initiative and overall corona vaccine efficacy would be the key impetus which will keep the participants’ sentiment elevated and markets’ bullish.
Where to invest to make money:
Primary markets too are expected to remain hyperactive during this period. Investors are advised to predominantly stick to good quality large businesses rather than selecting second quality stocks on the basis of lower valuation or catch-up rally.
Key Event of last Week:
Antony Waste Handling Cell closed around 30% over the issue price of Rs. 315 apiece upon listing marking yet another successful IPO debutant. Such exuberance on listing would certainly draw-in more business houses to consider IPOs in the market and forthcoming companies with IPO would be excited to pile up the line of IPOs in first quarter of the new calendar year. Such excitement in the IPO party would largely strengthen the overall economy which would provide risk capital to equip entrepreneurs and businesses to navigate real economic growth. It would be pertinent to note that in the short-run this IPO party would swallow liquidity from the secondary markets and cool down the bulls’ party.
Technical Outlook:
The Nifty 50 index closed another week on a positive note with a new lifetime high and almost all the sectoral indices contributed positively to the benchmark indices. PSU Bank and realty indices remained the top leaders. The market is continuing to trend higher as bulls are not considering loosening their grip on the short term trend. Similarly, the US and other emerging markets are rising on the back of high liquidity phenomena globally. However, a couple of days back nifty made a gravestone Doji and spinning top pattern, which are signs of short-term indecisiveness. The low point of Doji pattern i.e. 13860 can be watched as immediate support and any break below the same can be taken as a cautionary sign for mild profit booking as the market is sitting on heavy gains. Until then traders are suggested to maintain a bullish bias.
In the coming week, Markets would take cues from the global economy especially the US wherein the political transition will witness its final leg of drama which would drive momentary market movements. With India Inc. 's result season commencing, quarterly performance would keep markets buzzing with and IT pack would be first hitting the markets which are largely expected to register fine show. However, one may note that expectations of decent performance have largely been discounted by the market. With the result season advancing, Market is likely to dance to the tune of budgetary expectation rather than buzzing quarterly performance. Investors are advised to accumulate quality businesses in IT, real estate and cyclical sectors. Nifty50 closed the week at 14018.5, up by 1.96%
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