Nifty above 11,650 is positive, but be mindful of stop-loss, Market Guru Anil Singhvi tells investors
The Nifty is trading at levels just 500 points shy of its lifetime high. The current view on it is divided and both the views are equally strong, Zee Business Managing Editor Anil Singhvi opined. One view is tilted towards the belief in economic recovery
The Nifty is trading at levels just 500 points shy of its lifetime high. The current view on it is divided and both the views are equally strong, Zee Business Managing Editor Anil Singhvi opined. One view is tilted towards the belief in economic recovery. The Q2 results being a trigger for this optimism. Sectors including cement, IT and banks have posted strong results. This has also led to a rise in the buying activity on the back of heightened liquidity among investors.
The US markets have only lent support to this belief, the Market Guru said. The buying activity at 12000 reflects this belief, Singhvi further said. The Markets react before the recovery becomes visible.
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Another view is that the recovery after the pandemic will be slow. The economic activity virtually came to a halt during the lockdown phase. This school of thought thinks that the current market valuations are sky high and there is bound to be some correction, going forward. This group is indulging in selling activity, the Managing Editor said.
The domestic institutional investors (DIIs) have done selling worth over 12000 cr over 9 sessions while the Foreign Institutional Investors have bought shares worth Rs 6500 cr in five trading sessions.
Under such circumstances, there is fervent selling on recovery while avid buying on market corrections, Singhvi said. This is a precarious situation for the traders as they linger on this uncertainty.
He further said that the markets are showing some corrections now after a strong rally. Though, there is still no reversal visible, there are indications of consolidation now. This is not the situation of extreme volatility.
The mantra for investors is to know their stop losses clearly.
He also spelled out a crucial level of 11650, which the investors should keep in mind. He said that the investors should hold on to their position above this level. If the Nifty starts trading below this level, the investors should take a neutral stand from positive, he advised. He recommends profit booking here.
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The level to exit positions is still quite far, the Market Guru added.
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