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Preferable Points To Enter And Out From The Market
Stock investment contains risk. Before taking any decision of investment share market tips provider do a lot of research and analysis. This analysis is done on both factors fundamental and technical. The analysis should be done very carefully so you can get the right conclusion.
You can’t be emotional while buying the stock as it will lead you to failure. A wise investor always goes with the flow and invests in the stocks. Only the losers go in the opposite direction. You should be confident about the stock you are going to invest in.
So, when the situations are favourable you can enter the market and when you see that is not going right you should immediately come out from the market and should make an exit.
Here in this post, you will read some commodity market tips points factors. I.e. P/E ratio, P/B Ratio, Div yield of Nifty, FII trading activity.
P/E ratio Nifty:
It measures the ratio of market value to earning per share. By this, you can measure the behaviour of the market. Whether it will ...
... go up or not. You should sell out the available stock and make an exit when the P/E crosses 24. When it swings between the 20-24 market be careful towards dynamic changes.
At the moment of 16-20 P/E ratio value, be careful and select the suitable stock to buy. 12-16 is the stage of the P/E ratio where you can collect the stocks gradually.
Be alert, because the P/E ratio 24 indicates the negative returns. And the market will go in a downward direction. At this stage, if the investor is wiser he will definitely quit the market.
P/B ratio Nifty:
It is the 2nd most idealized point at the time of stock investment and also critical. It is used to measure the real stock value of any company. The book value might be different from the stock value of the related company. If the book value of any company can be overpriced from its stock price.
For example: If the book value is 100 and the stock value is 200 i.e. overpriced. At this time, the value of P/B will be 2. It is an equity trading tips that you should invest in the stock when P/B is underpriced.
If the P/B is 4.5 or greater, make an exit from the market. 3.5 - 4.5 is a crucial time so be careful. At the time, when the ratio is b/w 2.75- 3.5 confidently buy from the selective stocks. 2-2.75 is the time of collection. The company is suffering badly when the P/B is 2 or less than 2.
Nifty Dividend Yield:
While comparing all the ideal factors it is less discussed during the time of investment, because only the rich companies declare it. You can get the dividend yield by dividing the annual dividend per share from the share price.
If the dividend yield is less than 1% sell out the stocks. If it is 1% - 2% be attentive towards the market. If it is 2% - 3% make a mind to buy the stocks. If dividend yield 3% - 4% then try to increase the value of stocks. If the dividend is more than 4% you can surely buy the stocks by using resources.
FII’s Trading:
It is the most favourable time of the market when FII’s are performing well and buying the stocks. The moment, these FII’s operate to sell you can make an exit. You should be really careful when the market is in a volatile condition.
Along with these points, there are some indicators and technical factors which are also important in trading. We just hope these points will help you make a wise decision at the time of investment.
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