Anil Singhvi lays down hard lessons from November series as Nifty, Bank Nifty eye 13,000, 30,000 levels
Stock markets with Anil Singhvi: There is a long weekend ahead of us and there is already some lethargy being shown by the stock markets on Friday. That should not be construed as something wrong, Zee Business Managing Editor Anil Singhvi said. The Nifty is just shy of an important level of 13,000 and even the Bank Nifty is headed towards the 30,000 mark
Stock markets with Anil Singhvi: There is a long weekend ahead of us and there is already some lethargy being shown by the stock markets on Friday. That should not be construed as something wrong, Zee Business Managing Editor Anil Singhvi said. The Nifty is just shy of an important level of 13,000 and even the Bank Nifty is headed towards the 30,000 mark. The overall mood looks good, he said. The Market Guru said that this is a market for the buy on dips strategy to be implemented.
The Market Guru further said that it was normal for the markets to show some consolidation after a strong rally. It only augurs well for the markets, if this happens.
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On December Series
The Market Guru said that it appeared that the December series is starting on a perfect note, he said that he will discuss the good points and the bad ones that are leading the markets to the December series.
Reiterating his stance, the Managing Editor said that it bodes well for the markets to start the new series after some consolidation. One sided movement – positive or negative – is always challenging, Singhvi said.
The Nifty has seen corrections after one-and-half day strong rallies on three occasions and that is a good sign, Singhvi said. The markets achieved their lifetime highs on all the three occasions.
The markets corrected on the day of strong rallies followed by some consolidation in the next trading session.
Zee Business had on Thursday indicated that the futures and options markets are showing positive trends. This was despite the slowness in markets on Wednesday. If the Put-Call Ratio (PCR) corrects by 50 bps coming down to 1.27 then the markets become light.
If the correction is coming, the sole responsibility is on aggressive traders, Singhvi said. If the stocks are overbought then the corrections are bound to come, he further said.
The responsibility of a bull market also rests with the traders who are shorting at all the levels in the markets.
It is all right for the FIIs to continue buying in the market and putting in the money, but those traders who are indulging in short coverings without reason are propelling the markets upwards.
This is like chewing more than you can eat. That has happened on three occasions in November, the Managing Editor said.
The Market Guru held out the hard lessons from the November series for investors benefit. He said that if the market rally continues on second and third day, investors and traders should avoid getting into overbought territory.
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Another lesson top lesson to take to heart is to avoid unnecessary short positions.
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