oppn parties Stocks on Boil: Tread Cautiously

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  • JNU students march against the steep hike in fees, keep HRD minister Ramesh Pokhriyal stuck at the venue of the convocation
  • USFDA says Cytotron, an anti-cancer kit developed by Bengaluru based Rajah Vijay Kumar, is a "breakthrough device" for treating liver, pancreatic and breast cancers
  • Car sales show a minuscule uptrend after declining continuously for 11 months
  • Industrial output contracts by 4.3% in September, the worst decline in 8 years
  • Centre defends abrogation of Article 370 in the Supreme Court, says the power under it was used by the President six times previously
  • Legendary singer Lata Mangeshkar admitted to hospital with lung infection, put on ventilator
  • Shiv Sena MP Arvind Sawant quits as Union Minister
  • National Security Advisor Ajit Doval met the leaders of both Hindus and Muslims in Delhi on Sunday to ensure peace and harmony is maintained after the Ayodhya verdict
  • Tipu Jayanti passes off peacefully in Karnataka
  • 10 dead as Cyclone Bulbul leaves destruction in its wake in West Bengal
  • Shefali Verma breaks Sachin's 30-year old record by scoring an international fifty at 15 years and 285 days
  • Former Chief Election Commissioner T N Seshan dies at 87
  • India beat Bangladesh by 30 runs to win the 3rd T20 and clinch the series 2-1. Deepak Chahar becomes the first Indian to take a hat-trick in T20s and returns the best bowling figures of 6/7
  • Centre removes SPG cover of the Gandhis. However, they will still get Z-category security
  • CJI Ranjan Gogoi will have a meeting with UP chief secretary and DGP of the state in his chamber ahead of the verdict on the Ayodhya land dispute next week
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Stocks on Boil: Tread Cautiously

By Ashwini Agarwal

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.