oppn parties Stocks on Boil: Tread Cautiously

News Snippets

  • Corona cases in India cross 4000 and the death toll stands at 124
  • The government decides to double the testing of corona suspects from 10000 now to 20000 in the next three days
  • Flipkart assures employees that there will be no job or salary cuts due to the COVID-19 pandemic
  • Although it was obvious, but the government still clarifies that there is no need to switch off appliances and only lights need to be switched off on April 5 at 9pm after confusion in the minds of some people
  • PM Modi and President Trump decide "to deploy full strength of (Indo-US) partnership" to fight against COVID-19
  • 17 states have reported 1023 cases of coronavirus linked to the Tablighi Jamaat, which translates to 30% of all positive cases in India
  • The government says people should not use alcohol-based hand sanitizers before lighting diyas or candles on April 5
  • The railways say there is no certainty yet when services will resume after the lockdown and a final decision will be taken in the next few days
  • As coronavirus cases multiply in Assam, six north-east states seal their borders with the state
  • Power System Operation Corporation Ltd. (POCOSO) putting all systems and protocols in place at war-footing to ensure there is no grid failure due to reduction in demand on April 5 at 9 pm
  • Power ministry scotches rumours that the power grid might fail due to the 9-minute blackout called by PM Modi on Sunday, April 5
  • Centre asks people to wear home-made masks if it is absolutely essential for them to step out of homes
  • Centre asks states to allow licensed street vendors to sell essential items
  • 8000 samples were tested across India on April 2, but the government said that testing will be need-based and will not be used as a confidence-boosting measure
  • Air India operating special flights to fly passengers stuck in India since the lockdown
26 nurses and 3 doctors test positive for COVID-19 at Wockhardt Hospital in Mumbai, facility cordoned off, no entry or exit permitted from the hospital
oppn parties
Stocks on Boil: Tread Cautiously

By Ashwini Agarwal
First publised on 2017-07-11 07:18:06

The stock exchanges finally seem to have shaken off the indecisive phase to enter the grip of the bulls. Or have they? If appearances were ever deceptive, the record levels of Nifty and Sensex now are very much so. For, despite the Nifty closing at 9771 points and the Sensex at 31715, the volumes were thin across the board. This effectively means that just a few traders – and trades - are jacking up the prices. It obviously does not mean that the bourses are being rigged, for all the other sector-wise indices were also on fire and selling pressure was not witnessed at higher levels. If bears wanted control, they could have sold at higher levels. That would have made for healthier volumes. But that was not the case.

Some analysts are predicting a swift and sure march towards 10000 while others are skeptical, mainly due to lack of volumes in trading. But take a look at the smaller indices on Monday. Despite trading on the NSE remaining suspended for close to three hours, all indices except the BSE FMCG, showed healthy gains. Nifty bank and Nifty IT were the largest gainers while the market romance with midcaps seems to have tapered off with the said index gaining only 99 points in a fired up market. Previously, midcaps used to outperform the wider market by healthy margins.

In such a scenario, traders are advised to adopt a wait and watch policy. They should book profits in stocks that are ruling at levels that make for unrealistically high prices while hold for stocks that have seen higher prices than ruling at present. In any case, if the Nifty slips below 9700 again, there will be panic selling by those buying at current levels. It is a tricky market and moving with the herd can land people in a lot of trouble.