oppn parties Stocks on Boil: Tread Cautiously

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  • Amit Panghal becomes first Indian male to win silver at the World Boxing Championships
  • "Gully Boy" to be India's entry for the Oscars
  • Rajeev Kumar called an "absconder" by the CBI
  • Alipore court refuses to grant anticipatory bail to Rajeev Kumar
  • Trump likely to sign a mini trade deal with India next week
  • Government planning a loan mela to cover 400 districts in two phases
  • PM Modi says Kashmiris need a hug from all Indians
  • NPA tag will not be put on any MSME till March 20
  • Government likely to announce another economic stimulus package today ahead of the GST Council meet in Goa
  • Air Marshall RKS Bhadauria, slated to retire just a few days from now, to be the next chief of IAF
  • PM Modi slams politicians from his own party who are making irresponsible statements on the Ayodhya case and tells them to wait for the Supreme Court order
  • Telecom panel says resident welfare associations (RWA) cannot give monopoly access to any one service provider and infrastructure in public spaces and residential complexes will have to be shared by all
  • Mamata Banerjee meets Amit Shah, tells him there is no need for an NRC in Bengal
  • After 14 days, there is no hope left for reviving Vikram, the moon lander
  • CBI teams search for elusive Rajeev Kumar
PM Modi to address more than 50000 people at the Howdy Modi event in Houston today where he will be joined by the US president Donald Trump
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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.