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Investment Philosophy

investment philosophy

At StockAxis, we believe in research, study and deep analysis of each investment that we recommend.

How we recommend stocks:

StockAxis’ proprietary algorithm used for stock analysis

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Every stock is analysed using our proprietary algorithm which has been conceptualized, created, tested and proven robust over the years.

Stock trends closely assessed

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We closely assess stock trends; only when a stock is on a substantiated uptrend do we recommend it, and vice versa.

Leading stocks recommended

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We recommend only leading stocks in a focus sector. Our research strongly indicates that when a sector is on an upcycle, the leading stocks in that sector move up on the strength of the sector.

Strong EPS growth

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We recommend stocks that have shown a strong EPS growth in the past 3 years giving added weight-age to the most recent quarter results.

Technical analysis used

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We validate our stock picks with technical analysis.

Market rally analysed

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We recommend ‘buy points’ of our focus stocks in sync with a market rally.

Buy - New highs along with high volumes

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We recommend stocks which have achieved new highs along with high volumes.

Sell - New lows along with high volumes

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We recommend ‘sell points’ of our stocks based on new lows combined with high volumes.

Price-volume combination analysed

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Our recommendations include a combination of price and volume actions.

Stop-losses strictly adhered to

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We strictly adhere to our pre-set stop losses without any exceptions; remember it takes 100% gain to recover a 50% loss. Cutting your losses is like paying insurance premium.

‘Averaging down’ is wrong

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We don’t believe in ‘averaging down’, i.e. buying more when the price of the stock falls.

Objectivity strictly adhered to

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We don’t let emotions enter into our recommendations - we recommend ‘buy’ and ‘sell’ purely on our research and analysis.

‘Buy & hold’ without monitoring is wrong

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Every stock that we recommend is closely monitored till our target price is achieved; we don’t believe in ‘buy’ and ‘hold’ without a target price and stop loss.

Institutional investments monitored

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Our research includes monitoring institutional holding; higher institutional holding is a positive sign for a stock, and vice versa.

Rumours ignored

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We never advise to buy or sell stocks on tips or rumours; we strictly follow this rule.

Markets are never wrong

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We strongly believe - “Markets are never wrong - opinions often are.”

StockAxis’ Research Insights

Biggest gains within first 8 years after IPO

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Our analysis indicates that stocks tend to make their biggest gains within the first 8 years after their initial public offering (IPO).

Bear market - About 72% decline in price of a stock

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In a bear market, the average decline of a leading stock is about 72%.

Bull market - Only 1 out of 8 stocks come back as leaders

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Only 1 out of 8 stocks will come back to lead in the next bull market.

4-5 distribution days over 4 weeks = move to cash

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Our research indicates that 4-5 distribution days (high volume; market in downtrend) over the past 4 weeks is a sign that the market is in a downtrend and it’s time to be in cash.

Bull markets - 3-4 years Bear markets - 6-18 months

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On an average, bull markets last for 3 to 4 years and bear markets for 6 months to 18 months although longer bull and bear markets have been witnessed in the past.

In stock markets - history repeats itself

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Our extensive research, spanning the start of the Indian stock markets to the present, indicates that history definitely repeats itself in the stock market.

 
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