Jaydeb Dey, senior research analyst (technical) at Stewart & Mackertich Wealth Management, has developed specialised domain expertise in portfolio construction, derivatives research, trading & risk management, macroeconomic research and commodity and currency research.
A post graduate in economics, Dey’s expertise is rooted in his more than a decade’s experience in the fields of equity, commodity and currency research. During this period, he has had successful stints with R K Global Shares & Securities and VCK Shares & Stock, which helped him to work in different market trends and take up multiple assignments across all investment instruments: Exposure to equity, commodity and currency trades enhanced his knowledge about different sectors and asset classes and polished his expertise in developing intra-sector and inter-sector trading strategies in different phases of markets. As he himself said, during this phase, he felt the limitations of using depending on technical analysis alone.
This led him to adopt an integrated approach of technical and macroeconomic analyses towards research. That, he says, helped him acquire skills to analyse and predict the correlated performance and likely future trends of different asset classes.
Dey thinks that Indian equities are likely to underperform in the short-term, as a symmetrical triangle pattern breakdown on the Nifty is clearly visible, which brightens the possibility of continuation of this corrective leg. Hence, the benchmark index may retest downside support placed around 10,500 and 10,400. To break the deadlock the rupee has to appreciate, which looks unlikely at this juncture given that WTI crude is firmly trading above $72 a barrel. However, he still prefers accumulating large-cap pharma, FMCG, private bank and financial services stocks on dips around 10,400 levels. He strongly feels that identifying blue-chip stocks with low risk and high return is essential for generating good investment return. For that, rigorous study of the blue-chip stocks with a track record of excellent return in the past is necessary.
Dey basically looks for blue chip stocks at attractive valuations for investment. “Being a technical and derivative strategist, I do thoroughly examine market data, like past price actions in different market conditions and derivative and options data. I believe all investment decisions have to be justified by a reasonable risk-reward ratio. Hence, I prefer beaten down blue-chip stocks with an established record of good return.”
He favours companies with good fundamentals. “I prefer companies with strong fundamental background, business model and well-reputed management. I believe selection of blue-chip stocks with low risk and high return is the key to success. Also, portfolio construction with reasonable weightage according to the current market dynamics for the purpose of risk diversification is a must.”