Markets headed for correction? Anil Singhvi gives outlook, reveals Nifty, Bank Nifty strategy
Stock markets are riding at all-time highs and are showing an extreme reluctance to come down. And that has put a big question in the minds of investors - when will stock markets head for a correction? Zee Business Managing Editor Anil Singhvi gives his take on this. The Market Guru said that there is already talk, albeit in whispers, that the markets could see some turbulence over the last two weeks of this month
![Markets headed for correction? Anil Singhvi gives outlook, reveals Nifty, Bank Nifty strategy Markets headed for correction? Anil Singhvi gives outlook, reveals Nifty, Bank Nifty strategy](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_850x478/public/2020/12/16/135798-nifty16.jpg?itok=MIfz6wWE&c=c5af8c0f92ccc8e249257bf0f1cb18e8)
Stock markets are riding at all-time highs and are showing an extreme reluctance to come down. And that has put a big question in the minds of investors - when will stock markets head for a correction? Zee Business Managing Editor Anil Singhvi gives his take on this. The Market Guru said that there is already talk, albeit in whispers, that the markets could see some turbulence over the last two weeks of this month. A correction is imminent, he said, though the timing cannot be accurately guessed.
The logic differs though, he added saying that many believe that Foreign Institutional Investors (FIIs) go on a holiday around the year-end while some are of the view that the existing valuations are quite high and that may cause a correction.
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बाजार में कब आएगा करेक्शन?
अनिल सिंघवी- बाजार के करेक्शन का अंदाजा लगा पाना मुश्किल लेकिन करेक्शन ओवरनाइट ही आएगा, सही स्टॉपलॉस और रिस्क मैनेजमेंट के साथ करें तेजी...
30200, 13450 के नीचे जाने पर तेजी की पोजीशन कम करें#EditorsTake #Nifty #BankNifty #StockMarket @AnilSinghvi_ pic.twitter.com/nYURaHrRjN— Zee Business (@ZeeBusiness) December 16, 2020
Many are also connecting it to astrology or considering time till 14 January as inauspicious and all these may trigger a downfall.
The reasons could be anything from US stimulus not coming through in a timely manner or a sudden surge in the coronavirus infection, the Managing Editor further said.
What should investors do?
How should the investors prepare themselves to meet any sudden market correction? He said that as and when the correction comes, it will be overnight. It can be on any day and at any level, he added. Investors should consider risks while taking the overnight positions on the next day. He said that investors and traders should hedge their positions or carry only limited positions to the next trading session.
The investors should also know where to apply a stop loss if the markets open with a gap next day.
Giving an example, Singhvi said that if the traders are thinking of Thursday session, then the Nifty stop loss is 13,450. If the Nifty opens below this level, trades or ends below this level, the number of positions held by traders need to be reduced. As for Bank Nifty, the traders need to reduce their positions if the markets close below 30,200.
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It has been seen that as the markets are rising, many investors are increasing their position and the number of stocks. It is not wrong to make some quick money when the markets are on a roll, but the risks still need to be managed, he said.
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10:12 AM IST