Mid Cap, Small Cap Stocks – TOP TIPS! – 3 MUST HAVES - Investor Mindset, Long Term VIEW, Fewer Positions, Market Guru says to MAXIMISE GAINS

Significant action in mid cap and small cap stocks is expected in September in the Indian stock markets. What should the investors do at a time when the stocks in these segments are showing great action. Zee Business Managing Editor gives his take on this and retail investors must definitely watch it.

The Market Guru has advised investors not to get carried away by one-day recovery and investors must not look to reduce their positions. He expects the trends to pick up.

Today, at 9:40 am, the Nifty Mid Cap 50 was trading around 7,355.90 up by 0.55 per cent from the last closing.Meanwhile, NIFTY MIDCAP 100 was trading at 27,459.55, up 0.67 per cent. NIFTY SMALLCAP 100 was trading at 9,967.35, up 1.07 while NIFTY SMALLCAP 50 was trading at 4,971.55, up 1.16. Union Bank, Tata Power and Bank of Baroda were some mid cap stocks that were in the green today. Among small caps Indian Bank, Bajaj Electricals and NBCC were few gainers.

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Reiterating his point, he said that investors must always realise this that the investment is a long term view and is not just a one-day or one-week phenomenon. Many investors might have a notion that they are long term investors after remaining invested in stocks for just 1-2 months, especially after the king of momentum in the mid cap and small cap stocks since April.

He said that the definition or philosophy of investment does not change with the ups and downs of the stock markets. Long term remains same and the view of 1-3 years remains as it is. The investment must be made with this principle, he emphasized.

One must not exit a stock with a 1-2-day rally or fall, he further said.

If you start taking positions on the basis of 1-2-day movement, then you are not an investor but a trader. In trading the action is based on the price movement rather than the fundamentals of the stocks.

Traders have a different rules and principles to follow which are different from the investors, Singvi said.

He said that if you are invested in good stocks, then there is a fresh opportunity to accumulate them on every significant correction which could be a phenomenon triggered by mood at that point in time.

He said that the chances of quality stocks recovering fast are more for quality stocks when market conditions improve. An early exit may not be as rewarding always, Singhvi said.

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One must take a long term view, with fewer positions and the mindset of investor, the Market Guru said.