Noble or Long-term Stocks
First type is Noble stock. Stocks which are great for long-term investment and may occupy position in Mutual fund portfolio are known as Noble stocks. This type of stocks generally give Move with stability, neither with volatility. Their Market Capital usually found to be higher than 20,000 crore. For finding these stocks in market, we use to find their quality through their technical charts, Growth, Fundamentals, Balance Sheet, Market Condition and competition, Future and few others.
Small individual investors generally use these stocks for making any investment with view of more than 2 years. In a year, Noble stocks generally give return between 5 to 20 percent and sometimes, upto 30 percent depending upon market. Noble stocks generally keep growing with stable Growth in their numbers. HDFC is included in the list of Noble stocks. Means Investors generally use this stock for making long-term investment. However, HDFC is also in the portfolio of many of the Mutual Funds. Maruti Suzuki can also be considered in Noble stock list as their market share, Balance Sheet and Future are good.
Last reason for why Noble stocks are known to be Noble because these stocks generally gather regular interest of Investors throughout many years and sometimes even for lifetime. Public holding in these stocks remain healthy. However, mostly interest of public controls the direction of stock.
Momentary or Short-term stocks
Those stocks which generally remain suitable for any investment with short-term view are known as short-term stocks. Investment for short-term needs to pay higher attention towards tracking of your investment. We can’t include or say any stock as a short-term stock because it mainly depends on technical charts and Cooperate action. Cooperate actions that leads to big positive change in fundamentals of company generally make its stock attractive to keep in portfolio for short-term. Sometimes, over-sold stocks and stocks at lifetime low can also come in this type of list.
To decide after cooperative action that it will be short-term stock or long-term stock, you should check about what kind of action has been taken. Means, if taken action will affect the whole business model of company. Then, its stock can be taken in portfolio with long-term view. But, if the taken action will affect the company fundamental for short-term like getting new order or project, then its stock would be taken with short-term view.
In general mean, we use F&O type of contract to trade in stocks for very short-term. Meaning of trading is far away from the word investment. Those stocks which are generally below Rs.100 or near about it and have good volume are used to be in a trading means. These type of stocks can easily show a 5 percent move in a single trading session as compared to heavyweight stocks. For making any trade in these stocks, we largely consider their technical charts rather than their fundamentals.
As i have experienced, 2 digit stocks give more returns rather than heavyweight stocks. But making any investment in these stocks would only remain beneficial for you, if you select them on the basis of fundamentals.
Although in our market, there are numerous types of stocks in which you can trade or make investment. And understanding these types leads your understanding about stock market more wide and better. We will come again with a new article within this week. Our main focus in next article would be on the ongoing action in heavyweight stock, Reliance and Jindal Steel.
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