Hence, tactically smart money seems to be jumping from one set of buzzing stocks at the peak of their valuation to another set of mid cap stocks, which are “on the way to emerge as buzzing stocks”. Ever since the present ruling party came to power, the market cap of overall market moved up more than 74%, thanks to initiatives on economic reform measures. Therefore, the mandate from the forthcoming Gujarat elections remains critical for the continuation of the current Bull run. Thus, smart money is certain to move out of many overvalued “buzzing stocks” and swapping them for safer stocks. Do not stay long in buzzing stocks unless valuation is appealing, and the quality of management and balance-sheet are also comfortable.

Source: dna December 05, 2017 01:07 UTC