Invest in stocks with strong fundamentals, not high return potential, Anil Singhvis tips to investors amid market free fall
Zee Business Managing Editor Anil Singhvi has a few investor tips. The Managing Editor said that it is important to know if one is trading as an investor or trader. He said that the stop losses for Nifty and Bank Nifty have already been triggered
The Indian stock markets witnessed one of the worst closings in the last few months as the Sensex slipped 1170 points and the Nifty shed 324 points to settle at 17,417. Both headline indices corrected 1.96% each as bears took the control of the stock markets. This was the fourth straight decline for the markets.
Reliance Industries, Paytm, Bajaj Finance, Bajaj Finserv, Tata Motors, and NTPC contributed the most in this market fall amid multiple factors.
Zee Business Managing Editor Anil Singhvi has a few investor tips. The Managing Editor said that it is important to know if one is trading as an investor or trader. He said that the stop losses for Nifty and Bank Nifty have already been triggered.
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Bank Nifty has been giving signals of relatively less weakness over the last two trading sessions which today changed, Singhvi said adding that the 12-stocks index is now placed for a further weakness.
The index corrected by over 2 per cent on Monday as against its attempts to fall less on Wednesday and Thursday in the previous week. Markets were closed on Friday on account of Guru Nanak Jayanti.
His advice for traders is to follow the trend and strictly adhere to stop loss. In a falling market, it is imperative to exercise stop loss discipline, the Managing Editor said.
He said that there is an opportunity for investments in this market. The investment must be started in the range between 17,350 and 17,400. Another buying range is between 17,000 and 17,100.
Investors must also look for opportunities if the markets fall further between 16,700 and 16,800.
He also pointed out that the index may not have corrected appreciably, but the individual stocks have seen significant corrections.
But one must be selective in the investments made, he further said. Investors must put money in stocks that have strong fundamentals and not in those which have the potential to see a free run during the time of recovery.
Select stocks on the basis of quality and not return potential, he advised.
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He said that certain stocks may see a good rally on the back of a good pullback. That necessarily may not be a guarantee of quality, he concluded.
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