Finance World

How to find out if a share has bottomed out?

Published

1 year ago

June 14, 2023

Introduction

Making educated selections while investing in the stock market is essential, especially when looking for bottoming-out shares. If this point is understood correctly, a chance to buy inexpensive equities with the possibility of future returns may arise. This article provides insights into discovering future investing opportunities by examining key signs and techniques to determine if a share has hit its bottom.

No matter how successful a business is, there is always a danger that its stock price will decline. But purchasing a stock at a discount can lessen your risk of losing money. The key idea here is to increase your odds of secured returns; excellent returns come from buying a good stock at a discount and sticking onto it for a few years. Let’s talk about how to make it happen.

Fundamental analysis

Here’s the mantra – No matter what, never buy a stock why does not fit into your category of fundamentally good stocks. Its better to always trade in fundamentally good stocks as they are bound to make new highs every alternate quarter, if not everyday. Check out our spider charts to figure out the great stocks to invest your wealth into.

By assessing a company’s financial health, competitive position in the market, and growth potential, fundamental analysis is a crucial method for assessing investment opportunities. This study entails looking through important financial variables to determine a company’s true worth and predict its chances of success in the future. Industry analysis is yet another crucial element of fundamental analysis. Assessing a company’s long-term potential requires knowledge of the dynamics, trends, and competitive environment of the industry in which it operates.

A strong market position and competitive advantage increase a company’s ability to withstand downturns and overcome brief setbacks. Analysing the experience and track record of management is essential. Analyse the leadership team’s expertise, ability to make strategic decisions, and capacity for successful plan execution. A company’s ability to overcome obstacles and produce sustained growth can be ascertained by evaluating its past performance and future goals.

Technical analysis of a share

Okay, now after choosing a solid stock, it’s time to choose the entry point. As we previously said, keep in mind that a correction is always possible, regardless of how well a stock is performing. Stocks typically move in a pattern on a chart, and buyers enter at precisely calculated entry and exit points. Our goal must be to trade with them and depart at the exact moment that they decide to do the same.

Making investing decisions and doing market analysis are frequently done through technical analysis. To spot trends, support and resistance levels, and probable reversals. It includes analyzing price charts, patterns, and different indicators. The technical analysis emphasizes previous price and volume data to forecast future price movements based on prior trends. Moving averages are a common tool in technical analysis. Moving averages provide a clearer sense of the general trend by averaging price data over a period.

As potential indicators of trend reversals, traders frequently watch for crossings between several moving averages or when the price moves above or below a moving average. In technical analysis, support and resistance levels are very crucial. Support levels are price ranges the stock has traditionally struggled to drop below, potentially signaling a buying opportunity.

Another vital component of technical analysis is chart patterns. Bullish divergences, double bottoms, head and shoulders, and other patterns can point to future trend reversals. For instance, a possible upward reversal is indicated when the share price twice rebounds off a support level. This pattern is known as a double bottom.

Market sentiment and news for a share

A market news has the potential to pull a bottomed out share from its base or to push an uptrend share into a low. Its is very important to keep track of the events happening around. After all, its the emotions of people driving their minds while making investment decisions.

A key element that significantly affects stock price changes is market sentiment. It describes investors’ and market participants’ general sentiment or outlook toward a specific stock, sector, or market. News events, economic data, and investor emotion influence market sentiment. Understanding market mood requires keeping a close eye on news about the firm and industry trends.

It’s essential to be updated through various channels when monitoring market mood. Analyst reports, financial news sources, social media platforms, and websites can all offer insight into market expectations and investor sentiment. As investors share their ideas, experiences, and trading tactics on social media channels, this influence on market sentiment has grown.

Conclusion

Successful investing also requires a clearly defined investment plan, careful risk management, and establishing proper stop-loss orders. In conclusion, finding stocks that have reached their bottom and present profitable investing opportunities necessitates a thorough strategy that combines fundamental analysis, technical analysis, market sentiment assessment, and an awareness of potential catalysts. An effective investing strategy should include in-depth research, financial metrics analysis, market trend monitoring, and disciplined risk management.

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Finance World

Why Muthoot Finance is not affected by the small cap and mid cap fall?

Published

4 months ago

March 15, 2024

Adit Chauhan

This week, if you’ve been keeping an eye on the stock market, you might’ve noticed something unusual. While the small cap and mid cap markets took a serious dive, Muthoot Finance seemed to just avoid it, falling by a mere 2%. So, what’s their secret?

What is the business of Muthoot Finance?

First up, Muthoot Finance has a strong foothold in gold loans. Now, why does this matter? Well, when other investments seem risky, people tend to fall back on gold because it’s considered a safer bet. With gold prices staying high, Muthoot’s gold loan business is like a stable ship in a stormy sea.

Muthoot Finance target price by Kotak

Kotak Institutional Equities is pretty optimistic about Muthoot, recommending a “buy” with a target of Rs 1,500. They think Muthoot is in a prime spot to grab a bigger slice of the gold loan market. Plus, with some Non-Banking Financial Companies (NBFCs) hitting a rough patch, Muthoot has a clear ground to expand and grow further. Unlike NBFC, Muthoot has a strong ground presence with offices and branches, they have physical repo with their customers, unlike NBFC who operate from AC offices.

New Friends and New Frontiers

Muthoot isn’t just sitting pretty with its gold loans; it’s also making moves. It teamed up with Evfin to finance electric two-wheelers across India. And there’s more – Muthoot FinCorp has brought Veefin Solutions on board to kick off supply chain finance operations. This means they’re planning to lend a hand to small and medium businesses, helping them keep the wheels turning. So, its a great news that Muthoot is expanding into fields that are not dependent on gold loans alone.

Spreading Their Wings

Muthoot Microfin, a part of the Muthoot Group, is pushing into new territories too. They’ve just set foot in Telangana and have their sights set on Andhra Pradesh next. This move is about bringing more people into the financial fold, especially in places where banking services might be hard to come by. This gives an edge to Muthoot over banks and NBFC.

Are you wondering whether to invest in Muthoot Finance or Manappuram Gold? Take a look at this:

MUTHOOT FINANCE vs MANAPPURAM FINANCE A COMPARITIVE STUDY

So, What’s the Deal?

While the market’s mood swings have sent some companies into a pit, Muthoot Finance has managed to stay stable. Thanks to its focus on gold loans, strategic partnerships, and expansion plans, it’s not just surviving; it’s set to thrive. So, while the rest of the market might be catching its breath, Muthoot is marching on, steady as ever.

Keep following us for more such latest news on TradeAlone.

Finance World

Infibeam Avenues Ltd expands into the US Market with an Acquisition

Published

5 months ago

February 26, 2024

shaurya singh bhati

Hello, digital pioneers and fintech enthusiasts! Let’s dive into a groundbreaking announcement for Infibeam. Infibeam Avenues Ltd, an AI-powered financial technology, is embarking on an exciting journey by acquiring a 20% stake in XDuce. XDuce is a mastermind in enterprise Application and AI development based in the United States. This bold move involves an investment of USD 10 million. This also marks a significant milestone in Infibeam Avenues Ltd’s global expansion narrative.

XDuce: A Hub of Innovation

Nestled in the heart of New Jersey, XDuce boasts a team of over 150 software developers. They’re a team behind the curtain for marquee clients like Bank of America and Morgan Stanley, to name a few. XDuce’s expertise in business application implementations and transformation is nothing short of legendary in the financial and insurance sectors of North America.

A Fusion of Giants

So, what happens when Infibeam Avenues Ltd and XDuce comes together? Infibeam Avenues Ltd wants to merge it’s AI Solutions and CCAvenue Payments business into the network that XDuce has built. This collaboration is about expanding business footprints, revolutionizing how AI-driven technologies are employed in fraud detection, authentication, and risk identification in the financial sector of the US.

Redefining Financial Technology

Imagine a world where transaction fraud is no longer a looming threat, thanks to state-of-the-art AI technologies. That’s the vision Mr. Jay Dave, CEO of XDuce, and Mr. Rajesh Kumar SA, CEO of Phronetic.AI, share. By integrating PhroneticAI abilities with XDuce’s solutions, they will offer businesses and consumers in the US with security and efficiency.

The Road Ahead

According to Mr. Vishwas Patel, Joint Managing Director of Infibeam Avenues Ltd, international business currently contributes less than 10% to the company’s total revenue. But with strategic moves like this, they’re aiming for international business to soar to 30% of total revenue in the coming years.

Infibeam Avenues Ltd at a Glance

Infibeam Avenues Ltd is at the forefront of offering digital payment solutions and enterprise software platforms across the globe. With a transaction worth INR 4.5 trillion (US$ 54 billion) processed in FY23, and a client base of over 10 million. Spread across digital payments and enterprise software platforms, they’re leading digital revolution.

Wrapping Up

The strategic investment in XDuce is a bold step towards Infibeam Avenues Ltd’s vision of global expansion and innovation.

Stay tuned with Tradealone, as we continue to follow this exciting journey of Infibeam Avenues Ltd. Stock price for Infibeam closed 7% up today. We also see a continues profit growth for Infibeam Avenues over the past 4 years. Although, we cant recommend a buy or sell call for the stock, however we feel this stock deserves your attention.

Finance World

Satin Creditcare Expands its Reach by entering Telangana and Andhra Pradesh, stock has doubled so far this year

Published

5 months ago

February 21, 2024

Abhinav Tiwari

In a country where financial inclusion remains a major yet challenging goal, the expansion of services to underbanked regions marks a significant step forward. Satin Creditcare Network Limited (SCNL), a leading name in microfinance, announces its strategic entry into Telangana and Andhra Pradesh. This move not only amplifies SCNL’s presence to 26 states and union territories across India but also underlines its commitment to empowering the economically marginalized communities with vital financial services.

A Leap Towards Nationwide Financial Inclusion: SCNL’s mission to drive financial inclusion is more than just a business expansion; it’s a pledge to reach the unreached. The opening of two new branches in Telangana (Warangal and Huzurabad) and one in Kadiri, Andhra Pradesh, is a testament to SCNL’s dedication to making financial services accessible to all, especially in rural and semi-urban areas where banking facilities are scarce.

Why Telangana and Andhra Pradesh?

The choice of Telangana and Andhra Pradesh for SCNL’s latest expansion is strategic. Both states have shown promising economic growth yet house significant populations that lack access to basic financial services. By stepping into these states, SCNL aims to fill this gap, offering microfinance solutions that can serve as a catalyst for economic empowerment and sustainable development. Moreover, Telangana is a fast growing hub for Pharma industry as the state capital Hyderabad leads the way.

SCNL’s Blueprint for Empowerment

SCNL’s approach to empowerment through financial inclusion is holistic. Focused on rural India, with 76% of its operations dedicated to rural communities across 97,000 villages, SCNL is not just providing financial services but is also contributing to the rural economy’s growth. This expansion is a stride towards enabling access to credit for the underserved, thereby fostering an environment of economic resilience and growth.

A Message from the Leadership

Mr. HP Singh, Chairman cum Managing Director of SCNL, remarks, “Our expansion into Telangana and Andhra Pradesh is a significant milestone in our journey towards a financially inclusive India. It’s not merely about increasing our geographical footprint; it’s about touching lives, empowering the marginalized, and contributing to the nation’s economic fabric. We’re here to make a difference, one individual, one community at a time.”

Ashirvad Microfinance is a fast growing company as well. Check it out if you are interested.

Asirvad Microfinance achieves Remarkable Growth

Beyond Expansion – A Look at SCNL’s Innovations

SCNL’s innovations extend beyond traditional microfinance. The institution’s portfolio includes loans to MSMEs, affordable housing loans through its subsidiary Satin Housing Finance Limited (SHFL), and the commencement of MSME business through Satin Finserv Limited (SFL). These initiatives demonstrate SCNL’s commitment to diversifying financial solutions that cater to various needs of the underserved.

The Road Ahead for SCNL

As SCNL carves new paths in Telangana and Andhra Pradesh, the future looks promising. This expansion is not just about growth but about deepening the impact of financial inclusion across India. With continued innovation and a steadfast commitment to its mission, SCNL is poised to create significant strides in empowering communities and fostering economic development across the country. Moreover, the stock price for Satin Creditcare has almost doubled in the last one year.

Conclusion: SCNL’s expansion into Telangana and Andhra Pradesh marks a new chapter in its mission to facilitate financial inclusion across India. By reaching out to the economically marginalized sections of society, SCNL strengthens its role as a catalyst for economic empowerment and sustainable development. As we watch this journey unfold, the prospects for a financially inclusive India appear brighter than ever. Despite that we do not see any positive signs from the revenue and profit growth of the company over the last 5 years. Thus, we feel that investors must be cautious while investing here.

Remember that microfinance companies also face competitions from the major banks. However, as this move is towards uncharted regions of Telangana and Andhra, we do not think that the banks would pose any risk to Satin Creditcare.

Call-to-Action: We invite you to join the conversation: How do you think SCNL’s expansion will impact financial inclusion in Telangana and Andhra Pradesh? Share your thoughts and insights in the comments below. Let’s discuss how financial empowerment can transform lives and communities. Also, please follow Tradealone for more such latest updates.