Nilesh Shah's investment mantra for 2022: Traders should use stoploss, investors should employ averaging strategy for this year

In conversation with Zee Business Managing Editor Anil Singhvi, Nilesh Shah, Group President & MD, Kotak AMC, said the year 2022 would also be a good year for market enthusiasts. Kotak AMC Group president said that waning fear of omicron, expected good quarters and guidelines for management hint a good year ahead. Revival of FPIs sentiment as some buying interest seen in the last month also suggest that the domestic equity market is poised for a good year, said Kotak AMC MD. 

"Talking about the opportunities and strategy for 2022, the market expert suggested that traders should trade with the principle of stoploss, while investors should do averaging and keep a long-term view," said the analyst.  

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On FIIs selling, Nilesh Shah said we can see FIIs returning to buying spree in 2022." FPIs have made a good money during this bull run in the Indian market. It was obvious that they book some profit. This is clear from the fact that in comparison to 8 per cent stake on MSCI emerging market index, the Indian markets contribution substantially increased to 12 per cent due to good performance by the domestic market.  

This selloff from FPIs was not like March 2020, when they sold their stake at any price, but they sold in a limit or price range this time, he said. " It appears FPIs will go for long-term investment in the Indian market this year, however, there could be some profit booking in case they find some market exciting enough in the short-term.  

#MarketOutlook2022

साल 2022 बाजार के लिए अच्छा साबित होगा,नतीजे अच्छे आने की उम्मीद... निवेशकों को एवरेजिंग के साथ निवेश करने की सलाह:नीलेश शाह, ग्रुप प्रेसिडेंट & MD,#KotakAMC

जानिए 2022 का मार्केट आउटलुक अनिल सिंघवी के साथ...

@AnilSinghvi_ @KotakMF @NileshShah68 pic.twitter.com/rVbUEyU1R2

— Zee Business (@ZeeBusiness) January 3, 2022

Nilesh Shah said, however, DIIs base have seen a great improvement in comparison to FIIs and we may not see similar reaction as we witnessed in the past when FIIs pulled out money from the Indian equity market.  

Global factors would be more crucial in comparison t domestic challenges, he said, adding that if the Fed aggressively hikes rates in the US, we may see profit booking from FPIs and there might be some correction too.