Find The Perfect Tech Investment! 😱👩🏻💻📈
Hey-lo!
Kese ho? I hope May is treating you well! Before we dive right in to what you’re here for, I’m curious to know…
What I was up to: This week’s been good, mostly same-old same-old, BUT Niyati and I shot a lot of interesting content for YouTube so you can expect to see that real soon!
Anyway, in the meantime, check out the 15th episode of our podcast where I spoke at length with IIM-A Alumnus Saurav Ghosh, the Co-Founder of Jiraaf on how to 10x your Money by Investing in Fixed Income
Market ka haal: The Indian stock market benchmarks, the Sensex and the Nifty 50, have been volatile recently. The volatility index India VIX has surged nearly 35 percent so far in May, following a meager 0.30 percent rise in April and a significant 18 percent fall in March.
While there could be multiple reasons behind the fall, poor Q4 earnings, the ongoing Lok Sabha Elections' projected results, and the strong selloff by foreign institutional investors (FIIs) triggered by the election-led volatility are at the top of our lists. This means we may also expect the market to correct more in May, with Nifty possibly coming down to 21,200 levels. 📉📊
On the global front, the American and Asian markets have mostly been on the rise, yielding consistent interest rates by the US Federal Reserve and the anticipation of further cuts. The European markets too seem to be on a climb after a streak of falling. 🌍🚀
Also, we now have our very own WhatsApp channel to serve freshly cooked finance content directly to your DMs and get you to be amazing at managing your money 💰 Click here to join!
Humara Gyaan: India's economic landscape is rapidly evolving, driven by the remarkable growth of several key sectors. IT is definitely one of them and could potentially be a great addition to your portfolio's mix.
So, With National Technology Day around the corner and a lot of interest in tech stocks in general, I thought it'd make sense to help you watch out for some key metrics before you go ahead and purchase tech stocks. So, here you go:
During fundamental analysis, look for:
User Base Numbers: Keeping an eye on a tech company's user base numbers is crucial, especially for platforms like social media or streaming services. More users mean more engagement and content creation, which can translate into sustained growth and revenue.
Cash Flow: Monitoring cash flow is essential, particularly in the tech sector where agility is key. Cash flow enables companies to adapt quickly to changing market dynamics and navigate short-term challenges effectively.
Price-to-Earnings (P/E) Ratio: The P/E ratio provides insights into a company's valuation relative to its earnings. For established tech firms, a stable or growing P/E ratio indicates investor confidence and potential for future growth. Conversely, for newer companies, a focus on positive revenue growth can be indicative of future profitability.
While doing a technical analysis, check out:
While fundamental analysis focuses on financial metrics, technical analysis delves into market trends and patterns. Key metrics include:
Moving Averages: Moving averages help identify trends and potential entry or exit points for investments.
Relative Strength Index (RSI): RSI measures the momentum of a stock's price movement, indicating overbought or oversold conditions.
Volume: Analyzing trading volume can provide insights into the strength of price movements and potential market sentiment shifts.
Disclaimer: This information is solely meant for educational purposes only, and is not meant to provide any stock tips.
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People may lie to you but numbers and data never do! I cannot stress on how utterly important it is to do your due diligence before you invest in ANYTHING and I hope the metrics we introduced you to, act as a basic starter kit that will help you find your way!💰
Have a lovely week ahead, let’s talk soon!
Sayali❤️
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