In an episode of Outlook Money’s webinar series, host Kundan Kishore spoke with Nitasha Shankar, head of equity strategies at YES Securities, on the strategies one can adopt in order to make the right choice for stock investing.
Nitasha said that the first thing one should do is to establish one’s investment target: “Are you here to build wealth, that is, are you here for a long term or are you just here to take risk and try to make some money from it?” She recommended technical analysis for short-term trading, which involves studying price movements, volumes, and charts. When taking a long-term view for investing, she recommended that one could do some fundamental analysis, which includes examining the corporation’s business model.
She described two methods for choosing stocks: the bottom-up method, which concentrates on companies with excellent fundamentals, and the top-down method, which starts with industries and trends like green energy. Nitasha said, “Both strategies can be effective depending on the investor’s focus.”
She suggested that while short-term investors can strategically leverage market volatility, long-term investors should “cut the noise” and maintain focus. She pointed out strong growth potential in areas like infrastructure, healthcare, capital goods, clean energy, and premium consumption. Lastly, Nitasha said that to invest successfully, one needs to be patient, do research, and have a clear goal in mind.
