4 reasons why stock market is skyrocketing! Anil Singhvi lays out profitable strategy
The stock market has skyrocketted today and is holding onto the gains mostly.
Nifty 50 is up by as much as 144 points, even as Sensex is up by 521 points at the time of writing this update. In this stellar situation, Zee Business Managing Editor Anil Singhvi highlights the four key reasons for today’s rally and reveals trade strategy for the month of October.
4 main reasons for Today’s Rally:
1) Global markets are trading extremely strong
2) TCS and Wipro buyback news will support not only the I.T. sector but also support the Nifty
3) FII's are continuously buying in cash market for past 4 days
4) Indian markets are technically extremely strong and are the most important reason for today's rally. This year Nifty touched its lowest levels of 7610 on closing basis on 23rd March, yesterday’s closing was the highest closing since 23rd March.
The Market Guru said that since today is the weekly closing in the futures and options market, short covering will be the only reason the market will bounce back from lower levels. Market participants should not spoil their mood in case the market falls, instead they should use the dips to buy into the markets. Reversal in markets will happen as there are enough shorts in the markets that will have to cover their positions, ensuring that the market recovers.
Trading strategy for the month of October
Market will give opportunity on both the long and short side to trade, participants should ensure that they keep booking profits at higher levels and use the dips to buy in the market. It is important to understand the market is not going to move in one direction. Volatility will remain throughout October whether it is an intraday trade or an overnight position. The U.S. markets may fall 500-600 points one day and recover the same other day; volatility will remain during the day as well. Indian markets will also continue to remain volatile like the U.S. markets.
Key thing to remember for Market Participants
It is important that participants understand the direction, levels of the market and apart from that they need to know the strategy of how to trade in the markets.
(Authored by Rahul Kamdar)
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