Market Guru Anil Singhvi explains what triggers mid-cap stocks; watch out for these indicators!
Second half of the Thursdays session saw strong traction for the mid cap stocks. Many stocks witnessed big breakouts in the cash market. Are the markets seeing some rotation in preferences among the investors? Zee Business Managing Editor Anil Singhvi has an interesting take on this
Second half of the Thursday’s session saw strong traction for the mid cap stocks. Many stocks witnessed big breakouts in the cash market. Are the markets seeing some rotation in preferences among the investors? Zee Business Managing Editor Anil Singhvi has an interesting take on this.
The Managing Editor said that the investors are looking out for areas they can make money from. The Nifty has been stuck around 12000 while the Bank Nifty around 24500.
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For mid caps to do well, only two things are required - a favourable sentiment and rangebound market, Singhvi said. No one sided market, he added.
Mid cap stocks are preferred when the sentiments are good while in situations of adverse sentiments, investors and traders prefer large cap stocks.
Large cap stocks are considered safe and have less risk, he reasoned.
On one sided trends, i.e. when the indexes are running, then the investors will prefer only index stocks. There is no reason to look for mid cap stocks in such situations, he added.
When the index stocks’ movement calms down, then where can the investors make money from? During such times the investors as well as funds shift towards the mid cap stocks. The range-bound trade and time wise corrections over the last five trading sessions has propped up the chances of mid cap stocks.
This euphoria is there in short bouts, Singhvi said may be for 12 days in a year. This is the time when investors can really make handsome returns of their investments.
This activity has somewhat stretched this time. It will be interesting to see how things pan over the next few trading sessions, the Managing Editor said.
He also advised investors to remain cautious of the market movements. Some downward movement may not necessarily help the cause of the mid cap stocks.
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The sentiments matter a lot for the performance of the mid cap stocks along with the presence of range-bound trading, he reiterated.
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