Bull Market Strategy: Market Guru Anil Singhvi reveals what traders should do now
Anil Singhvi said that in yesterday’s session market witnessed strong rally in the closing hour and recovered very smartly from the day’s low. It was not expected and participants were surprised to see buying in last hour. On a closing basis 13113 was the life-high at which Nifty has ever closed. Nifty is making life highs since past 2 sessions. Nifty made high of 13145 on a intraday basis on 25th November. There is a good chance that market may break the levels of 13145 on Nifty today.
Bull Market Strategy: 3 things have been highlighted by Zee Business Managing Editor Anil Singhvi for traders in a rising market: 1. Traders should limit the trading position; 2. there will be opportunities for trade on both sides; 3. traders should book profit at upper levels and enter at lower levels.
Anil Singhvi said that in yesterday’s session market witnessed strong rally in the closing hour and recovered very smartly from the day’s low. It was not expected and participants were surprised to see buying in last hour. On a closing basis 13113 was the life-high at which Nifty has ever closed. Nifty is making life highs since past 2 sessions. Nifty made high of 13145 on a intraday basis on 25th November. There is a good chance that market may break the levels of 13145 on Nifty today. Participants are not used to see market close in red for past few sessions.
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Traders get nervous if the market corrects or there is profit booking even for a single day and they make a bad decision. Anil Singhvi said that it has been repetitively highlighted by him that traders should limit the quantity of their positions and also reduce the number of stocks, when the market is trading near life time highs. There is no harm in trading during the bull market. Strategy of buying the dips should be followed by the traders.
Traders should not keep heavy positioning in stocks because market can remain volatile both on the upside and downside. Also, it will difficult to predict the moves of the stocks that the trader is holding. So, traders should reduce the number of stocks for trading. It helps the trader to track the movement of limited stocks easily. Since the volatility has increased, traders should reduce their trading position in the market. It is easy to manage lesser positions and traders can put their stop losses a little deeper when they have limited positions to manage volatility in markets, as stop loss get triggered easily if they are placed extremely tight. This will ensure that traders don’t book heavy losses due to volatility.
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Traders have always witnessed that due to heavy positioning their stop losses get triggered and after that the stock starts moving and reaches their target price. This indeed hurts the trader as not only their stop loss gets triggered and they lost the money but also, they can see stock touching their target prices after stop loss being hit.
This is the precise reason Singhvi advices to reduce position and hold limited stocks as it gives traders space to keep their stop losses a little deeper and they can avoid it being triggered. Traders should trade on both sides of the market when it is trading in a range and can benefit from both sides of the market. Finally, traders should book profit at higher levels and re-enter at lower levels in the market.
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