Does Nifty 50 stocks fundamentals should be checked before investing for short term

General
1

1)When buying a stock which is in nifty 50 index do we need to check its fundamentals
Or, since the stock is in nifty it means that it has good fundamental and there is no need to crosscheck.
I am asking this because i want to invest in fundamentally strong shares based on technical indicators.

  1. when does a stock is removed from nifty 50
2

@ZT2048 This is the methodology used to select the constituents of NIFTY 50.
https://www.nseindia.com/products/content/equities/indices/nifty_50.htm

If your strategy is the same for fundamental screening for portfolio building then you don’t have to check.

But, to answer your question directly - you need to check regarding the stock before addition to your portfolio.
Good Luck!

3

SIR PLZ ELOBORATE IT

4

NIFTY 50 is designed to gauge the overall market sentiment and not as an ideal list of stocks to be invested in. If that was the case people would have only invested in the index and why bother stock picking. Stock picking is an elaborate exercise and it also depends on individuals strategy, risk appetite, timeline and the list goes to add to. There are several self-help books for you develop an acumen on stock picking, and there also good books on strategies. I think you can start with Zerodha Varsity as a primer. And also go through the module 9 which is still work in progress. Once you have a basic idea from Zerodha Varsity, you can read books like Peter Lynch’s “One Up on Wall Street”, Ben Graham’s “Intelligent Investor”, and many others to get deeper insights. Hope this clarifies?

Good Luck!

2 Likes
5

Thanks.
I think i was thinking of shortcut instead of hard work. You are right.

6

1 Like