Gaurav Sharma on Quality Stocks available at Beaten Down Prices
Understanding how Quality Stocks at Beaten Down Prices Accumulation smallcase may help absorb the market shock of selling almost 1000 points in just 2 days.
The smallcase is managed by Gaurav Sharma, a SEBI Registered Research Analyst. Let us dive into this smallcase’s strategy and the smallcase manager’s investment philosophy.
The market operates in cycles and cannot move in a straight line continuously. Institutional investors invest money on behalf of beneficiaries, and they need to explain the results of their investments. To achieve this, institutional investors practice sector rotation, averaging near lows, and making partial exits during market upswings.
Gaurav Sharma & team closely monitor the buying activities of fund houses, which are easily visible due to their high trading volumes. Currently, the market is at its all-time high, and some stocks show indications of profit booking based on technical charts.
It’s important to acknowledge that many investors bought these stocks during the market rise without anticipating the profit booking, which could trigger stop-loss hits and panic selling among new investors. The smallcase has identified these stocks and is patiently waiting for news or events that could cause their prices to decline, making them more attractive for purchase.
For the past two months, they have been consistently accumulating shares of quality businesses with substantial customer bases. These stocks experienced a temporary price decline due to certain news. Their team believes that institutional investors might have averaged their positions during this price dip, as evident from their trading volumes and price action theory.
The decision to continue accumulating these selected stocks depends on the ongoing observation of market conditions and the performance of the chosen stocks. Since these stocks have already fallen from their highs, they were being acquired in the smallcase at lower prices. The team sets a tight stop-loss strategy, assuming that institutional investors may have also averaged their positions near the lows.
The stocks were selected based on the companies’ expanding businesses and posted profits. The team believes that the positive fundamentals will eventually reflect in the stock prices when the market recognizes their potential. Consequently, the team has been gradually accumulating these stocks in small increments, following the concept of a smallcase of quality stocks at discounted prices.
Disclaimer: Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
The securities quoted are for illustration only and are not recommendatory.
Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
Disclaimer: Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. The content in this article is for informational and educational purposes only and should not be construed as professional financial advice nor to be construed as an offer to buy /sell or the solicitation of an offer to buy/sell any security or financial products. Users must make their own investment decisions based on their specific investment objective and financial position and use such independent advisors as they believe necessary. Disclosures: https://gauravsir.smallcase.com/smallcase/GASHMO_0006#disclosures
