In the year 2020, when the country was trying to overcome the pandemic, the GDP seemed to be going up and down while the share market seemed to be gearing up for a probable bull-run. In the first session of 2021, the market witnessed a quick fall and later the market witnessed an uptrend. Thus, the market saw the appearance of both bear and bull phase’s one after the other.
In the year 2005, when the share market was in an uptrend, there has been a rumour since then that there is bull present in the market and hence, whenever the market is in the uptrend, it is known as Bull Market. Such rumours have been doing a-round in the market for a while.
For the last five years, the Pharmaceutical sector has not been performing up to the mark but in the current year when the whole world is addressing the pandemic, the pharmaceutical shares have been performing well.
In 2020, we along with the whole world were stuck back in our homes carrying out work from home, attending online webinars, web meetings, etc. has become the new trend now. Citing the importance of technology, many companies have started investing in technology and due to that, the IT stocks have been performing very well. From January 2020 till December 2020, the share market index BSE has given close to 12% returns. By the end of the year 2020, the bull in the market seemed to be enjoying the festivals like Diwali and Christmas. Be it the bull phase or bear phase, the goods required for daily consumption have always been in demand and hence, the FMCG stocks have been in a boom too.
How will the market perform this year? When the financial analysts analyzed the market’s graphs and charts, they advised us to be cautious while trading and investing in the market. Also, if we invest systematically for the long-term in companies having sustainable competitive advantage then we can earn good returns in the long-run. This was found to be true from this year’s returns as well. Similarly, when the share market is going through a tough time and the market seems to be witnessing quick falls or is crashing, during such times gold has always performed well. This was seen this year too. Hence, investing systematically in the share market as well as gold is a good opportunity.
Most of us had to go through a tough time in the year 2020, hence we need to save a contingency fund that can help us through our tougher times. So before beginning with investments, it is important to have our contingency fund in place. If we invest systematically in gold along with the share market then we would be able to create good wealth. But if we have accumulated wealth and we ourselves are not there to enjoy it then all the wealth has no value. Hence, it is equally important to take care of our health too because as they say, “Health is Wealth.”
If we analyze the charts, then we find that the shares of both Hindustan Unilever and Cipla have given out a signal of an uptrend. Till these shares are above the level of support i.e. HUL (Stoploss - 2264) and Cipla (Stoploss - 700), traders can trade here for short-term or medium-term along with money management. Also, invest after thorough analysis and after discussing it with your financial advisor. This is not any buy/sell recommendation. Our prediction can go wrong anytime, otherwise, you would blame us.
How should you invest in the share market in 2021? For this purpose, we have our application called ‘Aryaamoney’, you can download and subscribe to the Smart Investor Program if you wish to. If you wish to open your Demat account with India’s leading brokers, then you can check out the link given below.
Also, make sure to invest in Health & Life Insurance as it is a very important aspect of the right financial planning. Do not ignore it saying, what will happen to me? Because, if you have life in you, you have the world with you. Hence, take good care of your health, maintain social distancing and keep your masks on!
While investing, think and invest.
Well, see you in our next blog…
Happy Trading, Happy Investing!!!
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