Anil Singhvi reveals when to apply buying strategy in falling markets | Know all about 2:30 factor

The stock markets have been making higher tops and higher bottoms. Will this trend continue and what does it mean for the investors? Zee Business Managing Editor Anil Singhvi gives his take on this issue. This is what the Market Guru had to say.

The Market Guru began by saying that the trend of a higher top and higher low has been there for the past three weeks. In between, there are trading sessions when the markets try to break the previous session low.

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The Managing Editor said that he checks for first signs of an alert via the ''2:30 factor''. In short, he said that the last hour trading is important. There is also importance of the last hour buying.

Singhvi said that when an investor takes a long position on a stock in a falling market, his confidence in the next session is also strong. If one is confident over the next trading session, then this translates into a situation where the people who will increase their positions have an upper hand.

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Though there was some setback on Thursday, that does not impact much as it was the day of expiry, he further said. On a day of weekly expiry if the markets are up or down by 25-50 points it does not matter much.

He said that the traders should proceed with a Buy on dips strategy till the time the stock markets do not breach the crucial support levels or give a downward closing. He said that whatever happens, will be there in front of us.

He advised risk management instead of worrying too much about the unknowns. He said that nobody knows when the markets will open down with gaps.

Those who fear a downward gap on the overnight position, must keep a Put. This market is not suitable for riding Call but requires hedging. You will not be required to give a high premium while buying a Put. Since the markets are on an uptrend, the premiums are not high.

There will be a risk of 1-1.5 per cent at least, he opined. The traders should know how to manage their positions. This should be the strategy. If the markets open further down, then one must take a Put further below.