Subterranean Investments: Digging Deep Into Overlooked Sectors

The more you dig deeper into the subject, the more knowledge you extract from it. This knowledge helps in discovering more truths and identifying the potential of hidden treasures. In the stock market too, there is a lot more to discover beyond the blue ship stocks.

A lot of stock market enthusiasts or mainly retail investors go with the stocks of blue chip companies. The core reason behind this is they trust the company and have a mindset that blue chip companies will never dissolve and will flourish proportional to the growth of the country.

But, the smart trader and investor always look into the lesser looked side of the stock market. There are more than 3000 listed companies, and the potential lies beyond 30-40 blue chip stocks.

Subterranean Investments

To dig out the wealthiest treasures from the stock market, you first need to understand its technicalities. We all are aware that the key to making profits in the stock market is buying low and selling high. It doesn't matter if you do this by short selling or by taking long positions. What matters is profits are made by understanding price fluctuation strategies.

The stock prices are regulated by the demand and supply theory. You need to crack the buying and selling behaviors of institutions and know which overlooked stock is targeted by them.

Well, the truth is, that institutional buyers and sellers are highly focused on the stocks that have not yet captured the interest of retail investors.

A good retail investor needs to study the sectors that have the chance of flourishing seeing the current economic setup. The sector rotation in the economy allows sectors to move in the cycle of highs and lows. One needs to strategically find out which sector is going to see a good boom and invest strategically in its stocks.

What are good subterranean investments currently?

A few months before, the PSU, Infra, and Media sectors were highly overlooked. But if we look today, their growth in the past few months has been remarkably good. The reason behind this is again the science of demand and supply. These sectors have fallen due to some economic disruptions and corporate actions. But, the smart and knowledgeable traders and investors knew the potential of these overlooked sectors.

The technical analysis of these sectors always supported their move. Seeing the candlestick cart it could have been easily predicted that these sectors are going to give a new all-time high very soon. But very few people bothered to study the stocks of these sectors and invest in the very low prices.

Now, when stocks of the above-mentioned sector started performing well, people started to look into them. But, still not many people are aware of their actual potential.

So, in the simplest terms, the best subterranean in current times can be the PSU sectors, Ifra Sector, and Media Sectors. The stocks are still low priced and have the potential to surpass every presumable target.

The Power of Technical Analysis

Technical analysis in the stock market involves the detailed and strategic analysis of candlestick charts. It involves managing emotions and risk and at the same time training your mind to find potential demand zones. It is the art of demand and supply combined with price action that can help you dig out some greatest stocks for investments. Here is how it can help:

When you understand the ups and downs of the stock market through demand and supply you know why the stock price has gone down and when can it come up.

You learn to set realistic targets. Not every stock is worth keeping for long time periods like 5+ years. You should know when to sell the stock by booking a good amount of profits.

It will always keep you ahead of conventional traders. When the other conventional traders get into the game, you must have made a good amount of profit by enjoying up move from the bottom.

Subterranean Investments is a forward-thinking investment strategy dedicated to researching and investing in unobserved markets. The strategy attempts to identify hidden opportunities that connect with its basic beliefs, with an emphasis on innovation, economic sustainability, and societal impact. Aligning it with demand and supply and price movement tactics will help you know when to buy and sell stocks that have the potential to provide you with quick gains.

Note: The views and opinions stated in the content belong to Sooraj Singh Gurjar, founder and MD, Get Together Finance (GTF).

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.