2-3 pct risk just opened in stock markets, Anil Singhvi says cut expectations, raise Hold period

Amid extreme volatile market and rising risk, Zee Business Managing Editor Anil Singhvi has said that stock market may attain levels where it will start giving reasonable returns again. The Market Guru said that Nifty has strong support at 10,700 to 10,800 levels while the Bank Nifty is standing at 20,900 to 21,050 mark support range even as 2-3 per cent risk factor has just opened up. However, Singhvi maintained that cash segment has given better returns and hence it's time to review one's cash segment holdings.

Speaking on the risk factor and major numbers, Singhvi said, "Nifty breaking 11,000 and closing below 10,950 on Monday is not a good sign and now the major support for Nifty is 10,700 to 10,800 while for Bank Nifty it close to its current support zone of 20,900 to 21,050. I am expecting both indices to hold this support till RBI credit policy and weekly expiry as both are falling on the same date." 

On what should be the strategy that one can maintain in this 2-3 per cent risk range, Singhvi said, "Cash segment stocks have performed better and hence one will have to review one's holdings and if they are taking any fresh positions, their time-horizon will have to be higher and the return expectations have to be lower. Means, one will have to book partial profits and profits on short margins while their time-horizon has to be around 12-15 days."

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Saying that 'patience pays', Zee Business Managing Editor said, "One will have to be patient in current market scenario. Now, the movement in stocks will be little and the same goes for returns. So, as and when you feel you have got a reasonable return on your position, book partial profit or full profit as lower returns involve lower risk too." 

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He also advised that in case of less movement, one should not lose one's patience and come out of one's position. He said that one should keep an eye on the target and the stop loss and the time-horizon. If all are intact, then the investor should continue to remain invested.