Picking Stocks for Beginners during COVID times

In these vulnerable times, unpredictability of the markets remains at a high, as the lockdown possibilities loom at large. I have just opened an account in Zerodha and need some guidance regarding picking stocks right now. Also, please suggest if I should delay my investment till the lockdowns are declared?

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Nishant, as you are new to market’s, would suggest you to read Varsity, which will help you learn everything about stock markets.

It is always best to do your own analysis and take trades / make investments accordingly, instead of relying on others opinion :slightly_smiling_face:


Before you invest in anything, invest your time in learning about it. That is what the great investor Mr. Warren Buffet says.

Next, depending on your seed money or capital and your risk appetite or risk capacity, begin with a small diversified portfolio.

Let us say: If I have 50000 Rs. to begin with. I would pick some stocks from the Nifty Fifty category because they are usually strong in their fundamentals. I would also pick some stocks from small and mid sized organisations.

So, shorting out about 5 stocks for my 50000, I would buy them one by one and pay attention to their price movements.

Next, it is your work now. Visit moneycontrol website. Check out what stocks are there under Nifty Fifty and what stocks are of small and mid sized organisations.

Pick some familiar names. Make a list. Monitor their price movements for some time. Also check their trends on Zerodha Chart.

Please Note:- I have mentioned Diversified Portfolio and 5 Stocks to go with for an investment amount of Rs. 50k. I have also mentioned Nifty Fifty Stocks and Small & Mid Cap stoks. This is my opinion. It may or may not work for you. But by investing in a few stocks you can be sure of that not all of your eggs are in the same basket - hence, less risk. As you begin with trading, you would know what works best for you. I have not specified any particular stock. Just read my comment twice or thrice and understand what points I am making here.


Do consider the following which is not related to investing as Devarishi has mentioned in detail what to do.

  1. Do you have medical Insurance
  2. Do you have term insurance - in case there are dependents. If not you can postpone this but
  3. Do you have emergency corpus.
  4. If you have any credit card outstanding which is being carried forward or loan outstanding prepay all these first.

No.3 is the most critical in these trying times as I believe even No.1 would be covered by company you are employed with.

Once you have done these three things, investing happens.

  1. Read as much as you can - this is the only way forward.
  2. Ensure you have an asset allocation.
  3. Then go ahead and invest.

If you are not sure of individual companies, read about Nifty 50 ETF. This is the best ETF in the market and great for first time investors as it covers India top 50 companies.

All the best


Thank u so much for ur detailed response :slightly_smiling_face: