Big change! From circuit filters of over 300 stocks, AMFI's list to trading strategy - Anil Singhvi maps road ahead for investors

The focus on mid cap and small cap stocks is now intensifying day by day. The latest news on these segments is that over 300 stocks will see a change in their circuit filters from today. These revisions are likely on the higher side. Meanwhile, Association of Mutual Funds in India (AMFI) is also expected to soon release a new list on the categorization of stocks. How should the action be seen? Zee Business Managing Editor Anil Singhvi gives his views on all these important factors that investors will have to deal with going forward! 

Significantly, the Market Guru said that investors could see euphoria build-up around the mid cap and small cap stocks throughout this week. He cited two reasons for this – one is the revision in the circuit filters of the mid cap and small cap stocks and the other reason is that people are now gradually getting used to the new margin rules. 

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आज से बदलेंगे 300 शेयरों के सर्किट फिल्टर, AMFI 5 जनवरी को जारी करेगी स्टॉक्स के कैटेगरी की नई लिस्ट...

अनिल सिंघवी से जानिए क्या हैं इसके मायने और क्यों ये पूरा हफ्ता रहेगा मिडकैप और स्मॉलकैप शेयरों के नाम...#EditorsTake #CircuitFilters #AMFI @AnilSinghvi_ pic.twitter.com/PsaTMD3XET

— Zee Business (@ZeeBusiness) December 7, 2020

The people are now getting a grip on the Peak Margin adjustments, he added. 

Singhvi said that there is also another reason that will add to the euphoria. On 5 January, AMFI will come out with a new list regarding the categorization of small cap, mid cap and large cap stocks. Many large cap stocks are expected to go to mid caps and vice versa, he further said.  

There are certain shares which have the capability to go to the large cap space including HAL, Jubilant Food and Yes Bank. It will be only known soon which shares make a switch and under what formula.  

He said that the investors should brace-up for this action today and for the rest of the week.  

The signals of this euphoria do not come only from the secondary markets but also the primary markets. 

How long this euphoria lasts and by how much per cent will be known in due course, the Managing Editor said.  

Singhvi said that the investors should exercise caution and plan their moves with well thought out strategy. 

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He however said that the current market situation is a delight for traders and tailormade for them.