Traders should trade on an intraday basis and minimise taking overnight positions whether it is high or low, Zee Business Managing Editor Anil Singhvi opines. He further said that the traders should watch out for global as well as local indicators, and asked them to be very cautious about all aspects of the decisions they make.

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If at all, overnight positions should be maintained in options, he further said. The Market Guru also said that even in the intraday trade, positions should be small with strict stop-loss. His advice is to book profits whenever there is an opportunity. 

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Anil Singhvi indicated that it was essential to do contra trade as the markets may rise significantly if one waits for a break-out or may even fall if they wait for a break-down. He said that the traders should keep an eye on the levels and make positions according to that.

 Singhvi also spoke about the situation in the US markets which have been putting up a robust show on the back of adequate liquidity despite no signs of improvement on the coronavirus front. There is no dearth of money in the US markets, he said.

One of the worrying factors that still remains in the US markets is the presence of high volatility. Though the markets are on an upswing, the ride is still not smooth, Singhvi said. The markets have been trading both ways. The markets have fallen after opening strong and vice versa, he added. 

Two different views have been emanating from the markets – one, where the belief is that the recovery will come once the lockdown restrictions are lifted and the economic activity resumes in full swing; second, where investors opine that strong fundamentals will be an ultimate determinant. The fundamentals have not exhibited any indications of recovery, Singhvi said.

The market guru said that both the views could be simultaneously correct and both views may also become simultaneously wrong.

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The May retail numbers in the US are up by 17.7 per cent against the expectations of 8 per cent rise.