Market Guru in talk with RJ Salil Acharya of Radio City: It is a right time to book profits in Banking and NBFC Stocks
Anil Singhvi, Managing Editor, Zee Business, there will be a correction in the market and people can get good levels to enter the market in the first or second week of November. During a candid radio chat with RJ Salil Acharya, Radio City, 91.1 FM, Mumbai, Mr Singhvi, said this is a time to book profits in banking and NBFC sectors when Bank Nifty is near 25,000-level and we can buy them again
Anil Singhvi, Managing Editor, Zee Business, there will be a correction in the market and people can get good levels to enter the market in the first or second week of November. During a candid radio chat with RJ Salil Acharya, Radio City, 91.1 FM, Mumbai, Mr Singhvi, said this is a time to book profits in banking and NBFC sectors when Bank Nifty is near 25,000-level and we can buy them again when there is a correction.
Starting the chat, RJ Salil said, a big day has started as the second half of our elections phase has come and the American Elections has just arrived. So, what will be your advice for all the investors who want to buy stocks for the long term but few were waiting for a small correction. So, do you think that they can get a time where they can enter the market for the long term? In his reply, Mr Singhvi chances are good that there will be some correction and you can get good levels to enter into the market. So, if you have waited for the time then go for it this time. Three big things are there (i) the American stimulus package has been delayed a bit (ii) elections are near, and it is not clear that who will win, so there will be an uncertainty and (iii) Corona cases are increasing in Europe and the US. So, global markets may face some difficulties but keep one thing in mind that is that we will not fall as much as the global markets will fall. That’s why don’t wait for too much and buy things little earlier. But if you are planning to buy then wait as I think that the market may offer you good opportunities to enter in the first or second week of November.
To which RJ Salil said, the second week of November which means it Diwali can be a good one for everyone. Mr Singhvi said, absolutely. Then RJ Salil said, the recent sales figures hinted that people were buying and there is a 4% increase in the GST numbers of October 2020 as compared to GST numbers of October 2019. This signified that there is a pent-up demand for things that was paused for the last five to six months. Do you think that people are opening their purse, now? Anil Singhvi said under compulsion or due to the boredom or as they were upset. You can say that they have been sitting at homes for the last six months and were postponing many of their decisions. This is why they are getting out and buying things. Therefore, there is no doubt that the results of every company are much better than expectations. But this is not confidence for the next six months. We all should wait a bit and see that does the passion remains the same or not as many people have faced salary cuts, there have been job cuts and businesses have been at a loss due to the lockdown. As they have been sitting at the homes for the last six months and that’s why it was necessary to buy things for them and they did it. What next, so do not get bullish, you have to be careful.
When asked about the stocks where investors can strategize and go for, Mr Singhvi said instead of asking you to buy, I would say to book profit. In the past two months I have provided names of several stocks, especially of banks and NBFCs, if you remember, we have been quite bullish on stocks from these sectors. Now, you should book profits here if you have banks and NBFC stocks in your portfolio. Book the profit when Bank Nifty is near 25,000-level and wait for a correction. Let the correction come maybe it happens at the start of November or the second week of the month then will buy them once again. RJ Salil asked it means we can buy HDFC, ICICI Bank to Federal Bank again. And, Mr Singhvi in his reply said actually, there is a brotherhood among stocks they grow together and fall together. If they are ready to support them when the market will fall then there will be a correction in each of them. The only difference is that there can be a variation in timelines. Therefore, in the fall, everyone will fall and all will grow when there is growth. So, we will buy them again.
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Market Guru in talks with RJ Salil Acharya of Radio City is a series of interviews on stocks market.
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