oppn parties Stocks on Boil: Tread Cautiously

News Snippets

  • T20 WC: USA enter Super Eights as their last match against Ireland gets washed out. They were ahead of Pakistan in the points tally. Pakistan were eliminated
  • T20 WC: USA enter Super Eights as their last match against Ireland gets washed out. They were ahead of Pakistan in the points tally. Pakistan were eliminated
  • BJD leader and former Odisha CM Naveen Patnaik said that the criticism of his aide V K Pandian is "regrettable"
  • As more than 20 BJP ministers lost in the recent elections, the new Union cabinet will have many new faces from the party
  • Congress Working committee asks Rahul Gandhi to take up the position of Leader of Opposition in Lok Sabha. Gandhi says he will consider the request
  • RBI governor Shaktikanta Das said that gold was shifted to India as the quantum of RBI gold abroad had increased due to recent purchases
  • Delhi HC rules that submitting photographic evidence of adultery will not be enough, they will have to be proved as authentic in the age of deepfakes
  • A four-member panel will review NEET-UG results of 1563 candidates to check if they were given extra marks for exam time loss
  • Mamata Banerjee says her party will not join Modi's oath-taking ceremony. Also says INDIA bloc might stake claim to form government later
  • K C Tyagi of the JD(U) dropped a bombshell when he said that Nitish Kumar was offered the post of prime minister for switching sides. Opposition leaders rubbished the claim
  • This May was India's hottest month in 36 years says IMD
  • T20 WC: India take on Pakistan today. Telecast to begin at 8pm IST
  • T20 WC: Afghanistan stun New Zealand and Bangladesh win against Sri Lanka
  • T20 World Cup: Australia beat England by 36 runs. This spoils England's chances of making the playoffs as they have lost both their matches till now
  • Heat wave continues in the country as monsoon moves slow
G7 commits to promote India-Europe corridor
oppn parties
Stocks on Boil: Tread Cautiously

By Ashwini Agarwal
First publised on 2017-07-11 07:18:06

The stock exchanges finally seem to have shaken off the indecisive phase to enter the grip of the bulls. Or have they? If appearances were ever deceptive, the record levels of Nifty and Sensex now are very much so. For, despite the Nifty closing at 9771 points and the Sensex at 31715, the volumes were thin across the board. This effectively means that just a few traders – and trades - are jacking up the prices. It obviously does not mean that the bourses are being rigged, for all the other sector-wise indices were also on fire and selling pressure was not witnessed at higher levels. If bears wanted control, they could have sold at higher levels. That would have made for healthier volumes. But that was not the case.

Some analysts are predicting a swift and sure march towards 10000 while others are skeptical, mainly due to lack of volumes in trading. But take a look at the smaller indices on Monday. Despite trading on the NSE remaining suspended for close to three hours, all indices except the BSE FMCG, showed healthy gains. Nifty bank and Nifty IT were the largest gainers while the market romance with midcaps seems to have tapered off with the said index gaining only 99 points in a fired up market. Previously, midcaps used to outperform the wider market by healthy margins.

In such a scenario, traders are advised to adopt a wait and watch policy. They should book profits in stocks that are ruling at levels that make for unrealistically high prices while hold for stocks that have seen higher prices than ruling at present. In any case, if the Nifty slips below 9700 again, there will be panic selling by those buying at current levels. It is a tricky market and moving with the herd can land people in a lot of trouble.