Market Guru in talk with RJ Salil Acharya of Radio City: Avoid fresh investment in stock market at these levels
Anil Singhvi, Managing Editor, Zee Business, said the stocks market is in a mood to create new records similar to Sergei Bubka, the Russian Pole Vault champion, who created numerous records one after another.
Anil Singhvi, Managing Editor, Zee Business, said the market is in a mood to create new records similar to Sergei Bubka, the Russian Pole Vault champion, who created numerous records one after another. During a candid radio chat with RJ Salil Acharya, Radio City, 91.1 FM, Mumbai, the Market Guru advised traders and investors to not put fresh money in the market at these levels and that he will suggest new stocks for the purpose by next week
Starting the radio chat RJ Salil said that stocks markets have touched the peak of the Mt. Everest and it seems that people have forgotten the lows of March and are trying to catch the tail of the running horse and I am bit scared of it. To which Singhvi said, the victory is beyond the fear and fear is also a wise thing. But right now, the market’s situation is like Sergei Bubka, the Russian Pole Vault champion, who made 36-37 new records one after another. Sensex and Nifty in the same way is in a mood to make new records and that too at a tremendous speed. So, currently, the market is in a mood to create new records, where everything is looking good and it is a time to be a little careful. It does not mean that it is a time when you should sell everything and name it to your children but you should wait for a little to invest new money into the market. If you have old money and you are investing it for trading purposes then apply stop loss and if it is an investment then there is nothing to worry about.
To this RJ Salil asked, often people wonder whether this market is running so much due to the vaccine of Corona as the results are not such great and some companies are talking about how they have reduced their cost and did things better. Do you think that the market is running just because of a vaccine? In his reply to this question, Singhvi said, the best thing in this market is that after an event everyone turns smart to find why it happened. It is easy to do post-mortem here but it is very difficult to diagnosis it, i.e. It is difficult to say first what the disease is but after the death anyone can say what led to his death. Same is the case in the market, people get to know why it went up and definitely, Corona’s vaccine is a region and there is no doubt on it. First Pfizer and then Moderna, both are saying. The good thing is that if more than one company making the vaccine then everyone will get the vaccine soon and will get it at cheaper prices, it is a matter of happiness. Along with this, there are 2-3 more reasons due to which the market has rushed and they are (i) liquidity – enough money is there, maybe you and I don’t have it, but enough money is lying with those who are investing in the market. (ii) Results of the companies – The strong results of the companies is energizing the market and the FIIs are buying relentlessly not only in India but across the world. Together, these things are energizing the market due to which, Nifty is very close to 13,000 mark and Sensex is also at its lifetime highs.
When asked about the stocks that can be bought at these levels, Singhvi said, constantly, I have been saying that banks will behave bullishly so just buy the banks. And, see the way the Bank Nifty has gone up and how banking stocks have performed. It is amazing. I believe little more is left here even after this run and there is no doubt in it. But, don’t invest fresh money in it. You can see L&T and ITC and the way they ran after I said about them. L&T has gone up by Rs 200-250 and ITC have become stronger. Bank Nifty has reached the mark of 29,500. So, wait for a while, if you have invested in the market then hold it and if you want to make a fresh investment then wait for a correction. I think, next week, I will give you some more good stocks and by then if a correction happens then it will give me a cushion to get you entry at the right price. It makes sense to wait a little more.
Market Guru in talks with RJ Salil Acharya of Radio City is a series of interviews on stocks markets.
07:02 PM IST