is this The Beginning of Stock Market Crash like 2018 ? Stock Market News Today I Stock Market 2024

7 Dreams India Official

19 Jul 202408:24

Summary

TLDRThe video script discusses the current market situation, addressing concerns about whether the observed market fall is a correction or a repeat of the 2018 scenario. The speaker shares their perspective on overvalued stocks and sectors, using data to support their analysis. They introduce a new feature in their Elite Learning platform, including a premium Telegram group for discussions. The script emphasizes the importance of understanding market trends and valuations, offering insights to help viewers make informed investment decisions.

Takeaways

📈 The speaker discusses the current market situation, particularly focusing on the overvaluation of stocks and the potential for a market correction.
📉 The speaker mentions that the market is seeing a fall, raising questions about whether this is a correction or a repeat of the 2018 scenario where mid-cap and small-cap stocks experienced a bloodbath.
💡 The speaker emphasizes the importance of keeping an eye on one's portfolio and market trends, especially during times of volatility.
🧐 The speaker shares his perspective on the market, suggesting that while some stocks are overvalued, it's crucial to analyze them from different angles before making any conclusions.
💼 The speaker introduces a new feature in their Elite Learning platform, highlighting the benefits of joining their premium Telegram group discussion for members.
📊 The speaker provides an analysis based on market capitalization, noting that only a small number of companies with a market cap of over 5000 crores have a price-to-earnings (P/E) ratio above 100.
🏢 The speaker identifies certain sectors like quick service restaurants, durable retail, aerospace, and defense as being overvalued and discusses the implications of this overvaluation.
🚀 The speaker mentions the recent performance of the stock market, particularly noting the behavior of the Nifty Midcap index and how it has influenced market trends.
💬 The speaker encourages viewers to join their Elite Learning platform for a more in-depth understanding of market analysis and to develop independent perspectives on stock recommendations and advice.
📚 The speaker offers a sneak peek into the benefits of the Elite Learning membership, including access to digital video content, a library of recordings, and live sessions until July 2025.
🔍 The speaker advises a cautious approach to the market until it establishes a clear direction, emphasizing the need for clarity in market trends.

Q & A

What does the speaker commonly say at the end of his videos?
-The speaker commonly says 'take care of yourself and your portfolio' at the end of his videos.
What is the main concern discussed in the video regarding the market?
-The main concern discussed is whether the current market decline is a correction or a repeat of the 2018 crash in mid-cap and small-cap stocks.
How does the speaker approach market-related news?
-The speaker reads market-related news as a reference point but then conducts his own study and analysis to form an opinion.
What specific metric does the speaker use to filter companies in the market?
-The speaker uses a filter for companies with a market cap above 5000 crore and a price-to-earnings (P/E) multiple above 100.
How many companies meet the speaker's filter criteria of a market cap above 5000 crore and a P/E multiple above 100?
-Eighty-five companies meet the filter criteria of a market cap above 5000 crore and a P/E multiple above 100.
What industries does the speaker identify as having high P/E ratios?
-The speaker identifies quick service restaurants, consumer durables, retail, and aerospace and defense industries as having high P/E ratios.
What does the speaker conclude about the market's valuation based on his analysis?
-The speaker concludes that the market is not significantly overvalued despite some claims in the news. He acknowledges the possibility of a 5-20% correction but does not see a bubble forming.
What technical indicators does the speaker use to analyze the mid-cap market's decline?
-The speaker uses the 9-day and 21-day exponential moving averages (EMA) and the stochastic RSI (relative strength index) to analyze the mid-cap market's decline.
What feature has the speaker's elite learning program recently introduced?
-The elite learning program has recently introduced a premium Telegram group discussion feature.
What benefits does the elite learning membership offer?
-The membership offers access to 90 hours of digital video content, a library of previous sessions, screeners and setups, weekly live sessions, a premium Telegram channel, and one-on-one WhatsApp support.

Outlines

00:00

📉 Current Market Overview and Concerns

The speaker discusses the recent market decline and its impact on portfolios, questioning if it resembles a correction or a repeat of the 2018 crash. He examines the overvaluation of stocks, highlighting that out of companies with a market cap above 5000 crores, 85 have a price-to-earnings (P/E) ratio over 100. He also notes specific sectors like Quick Service Restaurants, Consumer Durables, Retail, and Aerospace and Defense, which show significant overvaluation.

05:01

📊 Market Indicators and Elite Learning Membership

The speaker analyzes market indicators, such as the Stochastic RSI and moving averages, particularly in the mid-cap segment. He emphasizes the importance of understanding market trends and corrections. Additionally, he promotes the Elite Learning membership, detailing the benefits like access to digital video libraries, weekly live sessions, and the new premium Telegram group for discussions. The membership aims to help individuals become independent in market analysis and trading.

Mindmap

Keywords

💡Market Correction

A market correction refers to a decline in the market typically by 10% from its peak. In the video's context, the speaker is discussing whether the current market fall is a temporary correction or a sign of a more significant downturn akin to the 2018 market conditions. The script mentions a 'correction' in relation to the market's response to overvalued stocks.

💡Portfolio

A portfolio is a collection of financial assets such as stocks, bonds, and cash equivalents held by an investor. The speaker emphasizes the importance of keeping an eye on one's portfolio in the face of market volatility, suggesting that viewers should be mindful of their investments during times of market uncertainty.

💡Overvaluation

Overvaluation occurs when the market price of a stock or the market itself exceeds its intrinsic value, leading to a situation where the price may not be justified by the company's fundamentals. The script discusses overvalued stocks that are trading above a P/E (Price to Earnings) ratio of 100, indicating a potential market bubble.

💡Market Capitalization

Market capitalization is the total market value of a company's outstanding shares of stock. The script filters companies with a market cap of over 5000 crores to analyze the impact of overvaluation on larger companies, showing a focus on the valuation of companies with significant market influence.

💡P/E Ratio

The Price to Earnings (P/E) ratio is a valuation ratio calculated by dividing the market value per share by the earnings per share. It is used to determine if a stock is overvalued or undervalued. The video script uses the P/E ratio to discuss the overvaluation of stocks trading above a P/E of 100.

💡Sector Analysis

Sector analysis involves evaluating the performance of a particular segment of the economy. The speaker in the video talks about different sectors that have overvalued stocks, such as quick service restaurants and consumer durables, to understand the market's valuation in specific industry contexts.

💡Bubble

An economic bubble refers to a situation where the price of an asset or a group of assets experiences a sudden significant rise in price followed by a collapse. The script mentions the possibility of a market bubble due to the high valuation of certain stocks and sectors.

💡Fundamental Analysis

Fundamental analysis is a method of evaluating a security's intrinsic value by examining its financial health and other factors. The speaker suggests that viewers should learn fundamental analysis to better understand the market and make informed investment decisions.

💡Technical Analysis

Technical analysis is a trading discipline employed to evaluate investments and identify trading opportunities by analyzing statistical trends gathered from trading activity, such as price movement and volume. The script implies that understanding technical analysis can help viewers identify potential trading opportunities in the market.

💡Swing Trading

Swing trading is a type of trading strategy that involves holding a position for a few days to several weeks, aiming to capture gains in a stock's price over time. The speaker mentions swing trading as a method to find explosive stocks in a short period, indicating a strategy to capitalize on market volatility.

💡Market Direction

Market direction refers to the overall trend or movement of the market, whether it is bullish (rising) or bearish (falling). The script discusses the need to watch the market closely to understand its direction, especially after a market correction, to make strategic investment decisions.

Highlights

The speaker emphasizes the importance of keeping an eye on one's health and portfolio amidst market fluctuations.

There is a discussion on whether the current market fall is a correction or a repeat of the 2018 scenario with a mid-cap and small-cap crash.

The speaker introduces a new feature in their Elite Learning platform, including a premium Telegram group discussion feature for members.

An analysis of overvalued stocks in the market, with many stocks trading above their P/E 100, which could potentially correct the market.

A data-driven approach to understanding the market, with the speaker sharing their method of interpreting market news and data.

The speaker provides a query interpretation, discussing the number of companies with a market cap over 5000 crores and a P/E ratio above 100.

An exploration of sectors that are overvalued, with only 28 companies identified, indicating a potential market bubble.

The quick service restaurant sector is highlighted as one where earnings do not justify the high market valuation.

Consumer durables and the defense industry are noted as sectors with high P/E ratios, suggesting overvaluation.

The speaker discusses the importance of respecting market trends and finding opportunities within swings in the market.

An analysis of the Nifty Midcap index, noting its strength and how it has historically reacted to market corrections.

The speaker shares their view on small-cap investments, suggesting that they could be an opportunity after a market correction.

An announcement of an early access offer for the Elite Learning platform, with a discount for those who enroll in the 2.0 version.

Details of the Elite Learning membership, including access to a 90-hour digital video course, a library, and live sessions.

The speaker advises caution in the market, suggesting that after a certain point, the market will establish a clear direction.

A final reminder to take care of one's health and portfolio, and an invitation to join the Elite Learning platform.