Anil Singhvi maps shifting trends, says markets neutral, not negative; now keep CASH in hand
Nifty trends have changed. The market on Monday closed at 10.891.60, below the critical 11000 levels. This is almost 400 points from its previous high of 11,341 points. What does this mean for investors and how should the investors deal with this situation? Zee Business Managing Editor Anil Singhvi reveals a few tips for investors and looks at the way forward
Nifty trends have changed. The market on Monday closed at 10.891.60, below the critical 11000 levels. This is almost 400 points from its previous high of 11,341 points. What does this mean for investors and how should the investors deal with this situation? Zee Business Managing Editor Anil Singhvi reveals a few tips for investors and looks at the way forward.
The Market Guru said that it is for the first time that the market trend has become neutral from positive. The trend has been positive since the time Nifty 50 was at 7500 and started moving upwards. It made a high of 11,341. Zee Business has been informing viewers that the new trend will start only at levels below 11,000 or above 11300.
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Singhvi has previously said that the trend will move towards neutral from positive when the market settles below 11000 mark.
Nifty 50 ended significantly below the 11,000 mark on Monday, which indicates that the market has become neutral. Importantly, it is still not negative, he added. Investors should know that there is still some time for it to become negative.
Change In Strategy
He however, cautioned investors and told them to change strategy. He said that it is time that the investors review their positions. The market currently has global support. It is unlikely that there will be a one-sided uptick or slide. If the markets end below 11000 for a couple of days, then the downward risks will open.
The best way to deal with this is to reduce your positions. Whenever there is a slight upward movement, investors are advised to reduce their positions so they have a room to take fresh positions going forward. If you are an aggressive trader then you should short your positions with strict stop-loss.
When Will Positive Trends Emerge?
The new positive trend will emerge when the market settles at levels above 11200 and sustains there. Singhvi said that Monday’s fall was not because of global factors and was completely on the back of domestic indicators.
Shift From Global Focus
In such situation, it is advisable that the investors remove their focus on global markets and put it on their own fund flows.
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The Market Guru said that cash in hand is important. Buy again when there is an emerging opportunity.
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