Tips from eFunds: How to trade the Monday market?
The abrupt sell-off observed on the Dalal Street has forced the stock traders and forex traders to worry a little and distance themselves from the huge unending rally observed just ahead of the general polls.
However, it’s the time to track the market wisely, and not to give in to hearsay and book loses as a result. Like most of the well known stock market experts, efunds too advises to maintain calm and adopt buy or dips strategy but only in good stocks.
Geopolitical uncertainties are surely making the environment in the bourses tough for the investors and traders. Headwinds in name of Russia, Gaza, and Iraq have taken a toll on stock markets worldwide including India.
We saw stock market falling 300 points on Friday and more correction may be in store in days ahead, but it’s still a good bet to play as a buyer in the market.
In coming 2 weeks, equity market may remain in corrective phase, but you can add Divi’s lab, L&T, Reliance, Lupin and L&T in portfolio for the long term.
Indian stock markets are getting well backed up by FIIs and till the time scenario remains such, there is no need to short index futures.
Markets have still not gone to 7900; it is still in the range with 7450 on the lower side and 7750-7800 on the higher side. Hence, there is a lot to trade in the markets still.
Commenting on specific stocks, you can go ahead shorting Ultratech Cement and Bharti and going long on HDFC Bank and RCom. Axis Bank and IndusInd Bank are also good picks.
IT stocks may hold up considering rupee’s sudden fall against the US Dollar.