[SmartCat]

Originally Posted by Pancham

I had a query since you use Screener.in. Couple of days back I saw some script data that was wrong/not updated. Is it a reliable website?

Reasonably accurate. But I still double-check important data points at www.valueresearchonline.com

Originally Posted by OHCVtec

Hi SmartCat, would appreciate if you can share the formula here. It will definitely help a lot of us to make some buying decisions in these volatile times.

OK, just remember that the list needs further "due diligence". It is just the initial shortlist of candidates.

DIVIDEND YIELD STOCKS:

These offer between 4% to 6% or more dividend yield. What makes it attractive to me is Fixed Deposit like returns, with a possibility of capital appreciation. Before investing, I make sure the companies have a long history of paying dividends without breaks. I usually hold them for 1 to 3 years, and play the "cycles" - I buy at low prices during bear markets or corrections and sell at higher prices during "normal markets".

Smallcap Dividend stocks:
https://www.screener.in/screens/3943...lcap-Dividend/
Midcap Dividend stocks:
https://www.screener.in/screens/394318/Midcap-Dividend/
Largecap Dividend stocks:
https://www.screener.in/screens/3943...ecap-Dividend/

LOW PRICE TO BOOK VALUE STOCKS:

These stocks trade close to book value, but still have strong fundamentals (no debt, dividend paying). Like dividend yield stocks, I buy low during corrections and bear markets, and get rid of it higher prices during normal markets.

Smallcap Value Stocks:
https://www.screener.in/screens/394329/Smallcap-Value/
Midcap Value Stocks:
https://www.screener.in/screens/394321/Midcap-Value/
Largecap Value Stocks:
https://www.screener.in/screens/394315/Largecap-Value/

HIGH ROE GROWTH STOCKS:

These stocks have a long history of profitable growth. And I hold them for a long time. Most of the companies in this list will be resonably priced consumer or industrial brands or IT stocks.

Smallcap Growth Stocks:
https://www.screener.in/screens/394332/Smallcap-Growth/
Midcap Growth Stocks:
https://www.screener.in/screens/394322/Midcap-Growth/
Largecap Growth Stocks:
https://www.screener.in/screens/394316/Largecap-Growth/

[Pancham]

Experts here, I have a few questions about opening a demat account. I do have Kotak Demat account which is linked to my savings account. But I was also looking at Zerodha since the charges are pretty low.

1. Can anyone please suggest if maintaining two accounts is advisable?

2. What are the key downsides of opening a Zerodha accounts? Any current users can help?

3. How seamless are the payments in Zerodha?

[Sri Vathsa]

Originally Posted by Pancham

Experts here, I have a few questions about opening a demat account. I do have Kotak Demat account which is linked to my savings account. But I was also looking at Zerodha since the charges are pretty low.

1. Can anyone please suggest if maintaining two accounts is advisable?

2. What are the key downsides of opening a Zerodha accounts? Any current users can help?

3. How seamless are the payments in Zerodha?

Not an expert, but my dad was in same situation few months back(he has trading account with Motilal oswal)

1. Not needed, you can transfer your existing holdings onto your new broker

2. For me it was none, but for someone who is used to visiting broker and getting personalized services, there will be alot of difference, everything is online with Zerodha, they give very less margin for existing shares but my dads broker used to give lot of leeway, you can buy now and pay them later etc. Zerodha charges you for placing orders over phone. They don't provide you any advise on which share to buy/sell nothing.

But keep in mind, Zerodha charges are very low, never faced any accounting or fraud related issue with them, their customer care is good, they don't charge anything for buying or selling shares. I use Coin from Zerodha for all my MF investments.

3. Very easy and reliable, I use UPI payments - they don't charge anything for this (you can transfer money online but that is chargeable). When withdrawing sometimes takes a day or two

[highlander]

Originally Posted by SmartCat

I will then evaluate each stock displayed by my stock screener and then invest a fixed amount. I do not usually average down a stock. If markets fall further, new expensive stocks will fall in value and "enter" my screener. I will then decide on purchasing those stocks. The advantage of this strategy is that "buy decisions" are made by hard inflexible fixed rules. Only if a stock is trading at what I think is fair valuation, only then I'll buy. The disadvantage of this strategy is that one might soon end up with a large number of stocks in a bear market.

If some large institutional investor keeps buying these, then those blue-chip stocks will possibly not lose much value in this downturn and will always shows up in your 'screener query' result.
Can you translate this 'fixed amount' part to a non-full time investor. For someone waiting for the market to fall, is it better to invest a certain % each day your stock still shows up in query result?

Can you also elaborate on fair valuation calculation. I understand this will differ based on individual risk profile, but would like to know your method for your risk profile.
I was considering something on the lines of 'current price within x% of low price' or 'y% of all time low price'. Didn't find any matching existing screen, but idea was to catch these on the way down.

Originally Posted by Pancham

Not sure about this since the COVID effects were mostly seen in the last few days of Q4. No? Correct me if I am wrong.

Yes, the actual impact to companies affected will be seen in Q1 and onwards of current financial year. The effect of reduced customer spending and global recession will be seen in coming days.

[SmartCat]

Originally Posted by Sri Vathsa

never faced any accounting or fraud related issue with them

You won't have accounting or fraud related issues with them - zerodha is not small fry. They are now India's largest and most profitable (Rs. 450 cr profit in FY19) brokerage. And they got to this position primarily through word of mouth/referrals, and not media advertising.

with Zerodha, they give very less margin for existing shares but my dads broker used to give lot of leeway, you can buy now and pay them later etc

If somebody is not using leverage, this is a positive sign that the brokerage is not taking too much risks. From fund safety point of view, you should be vary of brokerages that offer too much leverage.

Originally Posted by highlander

If some large institutional investor keeps buying these, then those blue-chip stocks will possibly not lose much value in this downturn

That's OK. I don't need to own Hindustan Unilever or Asian Paints. If I don't get to buy it because it is a popular stock, I'm totally fine with that. For me, paying the right price is more important.

Can you translate this 'fixed amount' part to a non-full time investor. For someone waiting for the market to fall, is it better to invest a certain % each day your stock still shows up in query result?

If I like a stock, I will invest (say Rs. 100,000) and forget about it. If it falls 20%, I will NOT buy more and average down. This "fixed amount" strategy (opposite of "averaging down" strategy) ensures that one does not chase poorly performing stock thereby increasing risk. Also, I have no favorites - if I like Castrol and Tide Water Oil, I will invest equal amounts in them. I do not invest more in Castrol just because it is a bigger brand than Veedol (Tide Water Oil).

Can you also elaborate on fair valuation calculation. I understand this will differ based on individual risk profile, but would like to know your method for your risk profile.

Refer to my nine screener settings. All the stocks listed are "fair value" (but not necessarily a BUY) according to me. Eg: Largecap growth stocks I might pick up if it is trading below 20 PE. But I will buy midcaps growth stocks only if it is trading below 15 PE. Refer to this thread for my investing thought process:
https://www.team-bhp.com/forum/india...ve-sector.html (Guide: Investing in shares of the automotive sector)

[digitalnirvana]

Hi @smartcat apologies I think I'd asked this before but not sure. My FIL who has made some questionable investments (not that I'm to talk, being broke of my own spendthrift nature) and he has been investigating in MFs through a broker called NJ wealth. Are they safe or should he shift to a different broker?

[Pancham]

Originally Posted by Sri Vathsa

3. Very easy and reliable, I use UPI payments - they don't charge anything for this (you can transfer money online but that is chargeable). When withdrawing sometimes takes a day or two

How much time, on average, does it usually take to deposit and withdraw the funds? In case of Kotak since I have a savings account, it is usually instant.

[carboy]

Originally Posted by Pancham

How much time, on average, does it usually take to deposit and withdraw the funds? In case of Kotak since I have a savings account, it is usually instant.

With Zerodha, UPI transfer takes seconds. Getting money back takes a day or so. Kotak Sec also takes takes time getting money back. ICICIDirect is really seamless. Both transferring money & getting it back is instant.

[hothatchaway]

Originally Posted by digitalnirvana

Hi @smartcat apologies I think I'd asked this before but not sure. My FIL who has made some questionable investments (not that I'm to talk, being broke of my own spendthrift nature) and he has been investigating in MFs through a broker called NJ wealth. Are they safe or should he shift to a different broker?

Taking the liberty to reply. Best to invest in MF via the direct route. No point in having the broken earn trailing commission when the advise they provide, if at all, is questionable. From an administrative angle and if starting out, one can pick upto two AMC (asset management company) whose funds one can invest in. Else open an account with MFU online which is the common AMC platform. One does not have to remember multiple passwords that way.

https://www.mfuindia.com/

[digitalnirvana]

Originally Posted by hothatchaway

Taking the liberty to reply. Best to invest in MF via the direct route.

Absolutely but he's got a mind of his own and, well, lets leave it there. I am mainly worried if this brokerage firm is safe or at risk of defaulting. Hence the query.

[Akash86M]

Can you guys suggest a platform for stock trading. I have zero experience in this. What little research I jave done online shows Zerodha is pretty popular these days. I'm more inclined in signing up with a established name. Motilal and Kotak is on short list, so is SBI. Would be helpful for some guidance on pointers, what to check before signing up.
Thanks in advance

[warrioraks]

Originally Posted by Akash86M

Can you guys suggest a platform for stock trading. I have zero experience in this. What little research I jave done online shows Zerodha is pretty popular these days. I'm more inclined in signing up with a established name. Motilal and Kotak is on short list, so is SBI. Would be helpful for some guidance on pointers, what to check before signing up.
Thanks in advance

My suggestion would be to go for a well known platform (you listed few) based on best deal you get on - brokerage and annual maintenance charges.
This being a highly regulated space, it is very difficult to go wrong if you choose an established house.

I personally use Sharekhan (now owned by BNP) and have never faced an issue.

[carboy]

Originally Posted by Akash86M

Can you guys suggest a platform for stock trading. I have zero experience in this. What little research I jave done online shows Zerodha is pretty popular these days. I'm more inclined in signing up with a established name. Motilal and Kotak is on short list, so is SBI. Would be helpful for some guidance on pointers, what to check before signing up.
Thanks in advance

Zerodha is the biggest stock broker in India currently.

Zerodha charges zero brokerage on delivery trades. Kotak may charge somewhere around 0.25% or more. ICICIDirect charges around 0.50%.

[sukhoi]

Originally Posted by SmartCat

In a bull market, the markets don't go up all the time. There will be corrections. Similarly, in a bear market, markets don't go down all the time. There will always be retracements (upmoves).

Totally agree, am aware and accept that we would have spikes in a falling market as well. I guess what I meant was that I was surprised at the sharp upmove, was prepared for an upmove but actual upmove that happened seemed too high to me and so thought if there is more to it. Though now when I look back, considering that we fell so much, this kind of an upmove was not that out of place. Historical data also suggests so. Shared historical data further below, which I came across.

Originally Posted by sunilch

There are multiple reasons why markets are (and can be intermittently) UP now after a series of downs.

This is a start of the month which also had a couple of holidays (markets closed). We have many SIPs during the first 10 days as opposed to the later part of the month. Hence you may see a lot of buying by DIIs/MFs.

Very valid points. Thanks.

Originally Posted by SmartCat

OK, just remember that the list needs further "due diligence". It is just the initial shortlist of candidates.
DIVIDEND YIELD STOCKS:

Thanks for sharing this @SmartCat.

I was thinking about other reasons for upmove as well and one thing which came to my mind was that today we are a lot more aware about stock markets and investing is accessible to everyone thanks to internet. When the 2008 downfall had happened people were scared and did not want to invest much (though some must have done and made good returns as well) but today people have seen that such things would occur when economies would be hit and markets would collapse but eventually would recover. A lot of information is available online (blogs, youtube, threads like this) and investing can be done from the comfort of your home through an app or website seamlessly.

For those interested in how historically markets have reacted in previous falls

• In 1992 Sensex fell 44% in 15 weeks, then went back up 37% in 6 weeks and then fell again 32% in next 13 weeks
• In 2000 Nifty fell 24% in 6 weeks, then went back up 18% in 2 weeks and then fell again 26.5% in next 6 weeks
• In 2008 Nifty fell 30% in 2 weeks, then went back up 25% in 2 weeks and then fell again 32% in next 23 weeks
• In 2020 (so far) Nifty fell 39.5% in 9 weeks, and has gone back up 21.5% in 2 weeks

All data as shown on CNBC channel.
Related twitter thread - https://twitter.com/gvkreddi/status/1250299899024822272

Will markets follow a similar pattern or not, time will tell.

Cheers,
S

[Pancham]

Originally Posted by carboy

Zerodha is the biggest stock broker in India currently.

Zerodha charges zero brokerage on delivery trades. Kotak may charge somewhere around 0.25% or more. ICICIDirect charges around 0.50%.

With Kotak, the exact price you pay for one share is X+0.48%.

X being the share market prices. This includes brokerage (0.29% brokerage for the plan I have), STT, GST, etc.