Greetings !!

Yesterday, (on 18 August 2020) NIFTY50 Spot Index Closed at 11385.35 levels with Price Earning Ratio of 32.03; on 14 January 2020, when NIFTY50 closed at it’s highest ever level even then PE Multiple was only 28.67…

On March 23rd, 2020 when NIFTY50 Spot Index Closed at 7610.25 then PE Multiple was 17.15

34 Derivatives Stocks out to 139 have made 52 week High or All time High from then to now.

How much things have changed in last 5 Months (i.e. from 18 March to 18 August 2020).

Then, nobody interested in BUYING and today nobody looking for reasons to SHORT SELL.

However, we always play contrarian. Therefore, best to offer you “Second Opinion”.

This write-up will help you understand about our approach towards Market.

 

Before proceeding further, please do refer Part One, click attached URL.

https://rockettrades.com/2020/03/18/correction-recession-depression/

 

Now, time to see assess the performance achieved by the Pillars’ Strategy after above post.

TABLE – TWO

NSE SYMBOL	Closed Price on 17 March 2020	CLOSING BASIS SL	Closed Price on 18 August 2020
ADANIENT	133.4	65	213.7
BAJFINANCE*	3444.85	1231	3419.9
BALKRISIND	879.35	324	1341.3
BATAINDIA*	1306.5	474	1256.55
DLF	144.6	67	157.15
GMRINFRA	16.6	7	21.25
JINDALSTEL	107.2	51	224.9
JUBLFOOD	1328.7	493	1915.75
MUTHOOTFIN	640.15	239	1238.3
NAUKRI	2101.9	783	3276.65
NIITTECH	1181.9	515	2011.5
TATACONSUM	283.85	102	545.75

Highlighted in Blue color have had made 52 week high or All time Highs after our advise.

*Loss making Stocks. Even then above Portfolio generated Returns of 51% in five months.

Considering all of those Stocks as listed in Table Two, closed as of today Morning levels.

 

Phase One completed.

Now time to proceed towards Phase Two of “Correction, Recession, Depression“ !?

 

TABLE – THREE

As of today, following 10 Stocks are controlling 62% of NIFTY Movements, either side.

SYMBOL	WEIGHTAGE (%)	P/Earnings	P/Book
RELIANCE	13.95	33.33	2.94
HDFCBANK	9.52	21.18	3.27
INFY	7.36	25	6.23
HDFC	6.54	14.67	2.36
ICICIBANK	4.97	24.95	1.84
TCS	4.96	26.34	10.05
KOTAKBANK	4.17	30.45	3.9
HINDUNILVR	4.11	71.03	58.13
ITC	3.6	15.92	3.72
BHARTIARTL	2.63	-8.02	2.81

We need upward revisions in third and fourth quarter earnings to justify these valuations; Otherwise, sustaining 32 PE multiples at current levels are way to difficult for NIFTY50 given all the news flow and visible situations at the ground levels.

We are in phase two where Policy Trade is shifting back to Re-opening Trade.

 

In war, as in Stock Market, most failure comes from inaction. Now is the time to act.

Better Re-balance Your Market Risk from Speculative Greed to Speculative FEAR.

 

Thanks for Reading.

Team Rocket

Get in touch with us at,

~ WhatsApp: +91 99003 30558

~ E-Mail ID: Rocket@RocketTrades.com

For more details, doubt, feedback; Speak with Nilesh Jain on 99003 30558

We’re Strictly a Research House armed with proprietary methods & workings.