The Rise of the Large Caps

The Rise of the Large Caps

After more than a quarter of Bear markets, it seems like the Bulls are back in business. Technically. the Nifty has given a breakout today, which means we may see a 11200 touch by Nifty within a month, starting today, but this time around, the stocks which may take the Nifty higher would be the Large Caps. The Mid and Small Caps may recover a bit but won’t get to the Feb-2018 levels.

Some of the potent Large-Cap stocks that may yield profits this month are:
ASIAN PAINTS
HINDUNILVR
BAJAJ-AUTO
MARUTI
HDFC
ACC
ULTRACEMCO and
INDUSINDBK

Those holding on to the Mid & Small Caps may average them out and exit the stocks once the Nifty nears the 11200 levels and exit with minimal profits, or just hold on for some more time (maybe a year or two).

If the Nifty manages to cross the 11300 levels we may see it going up to 11500, but this seems a distant possibility as 11200 is a strong resistance for the Nifty.

The last Bull run was driven by the Mid and Small Caps, but this Bull run will be driven entirely by the Large Caps. Those who are unsure of the stocks may buy a Large Cap – Growth Mutual Fund first thing tomorrow morning and book profits by end of July to mid-August.

The Long-term Capital Gain Tax is 10% and
the Short-Term Capital Gain Tax is 15%

So, in actual, it does not make a huge difference if one books a short-term profit in a Mutual Fund as well. A Good opportunity coming our way. Let’s grab it and make the most of it.

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