Stock Market Today: Anil Singhvi says traders need not worry, should remain prepared for all situations
Stock Market Today: Niftys Friday closing came as a surprise and this was largely on the back of selling activity by the traders, Zee Business Managing Editor Anil Singhvi said. The Nifty 50 index lost 122.05 points or 1.08 per cent and ended at 11,178.40 last week
Stock Market Today: Nifty’s Friday closing came as a surprise and this was largely on the back of selling activity by the traders, Zee Business Managing Editor Anil Singhvi said. The Nifty 50 index lost 122.05 points or 1.08 per cent and ended at 11,178.40 last week.
The Friday session was not only unexpected, but also a difficult one, Singhvi added. On Friday, both Nifty and Bank Nifty traded in the range of 300 and 800 points, indicating high volatility in the markets.
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Many, including himself, did not expect a closing like this and he believed 11,200-11,225 level as a very strong support zone, the Managing Editor said. It is difficult to know the indicators on the last trading day of the week, he further said.
Advising investors not to worry, Singhvi said that such unexpected events sometime happen and the traders should be prepared to deal with them, he added.
The Market Guru said that the selling was not as much by funds (Foreign Institutional Investors) as has been seen in recent times. Singhvi said that on the last trading day, it appeared that the traders “threw” away their positions. He further said that it looked like they were waiting for a certain level of stop-loss, which got triggered once the Nifty went past 11,200 mark.
The breaching of the 11,200 level was a critical point, he added. While this support level was broken, the fact that the market did not come upward to this level even once was a decisive factor in Friday's closing, Singhvi said.
Singhvi explained that disciplined traders may have exited on strict stop-loss basis. In hindsight, it may look now that traders should have waited for some more time. But, the right strategy is to strictly follow the stop-loss. Things may work some time and at other times may not work.
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He said that the Put-Call ratio has decreased significantly, which is good. If the traders have reduced their positions, it augurs well for the markets.
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