Podcast | Stock picks of the day: Vodafone Idea among 3 stocks that could return 10-16% in a month

Albeit Nifty50 appears to have registered a breakout, above its 8-day old consolidation zone between 10,650 and 10,440 levels, however, it is not looking that convincing.

One prominent reason was that the breakout was on the back of negative advance-decline ratio and with a 64 point narrow range which depicted a small bullish candle on the daily chart whereas on the weekly charts, Nifty formed a ‘Hanging Man’ kind of formation.

Besides, it appears to be facing selling pressure from its interim top of 10,710, which was registered on October 17, from where the initial pullback rally was sold off only to make new corrective swing lows.

Apart from this 200-day moving average is placed around 10,754 levels. Hence, the entire zone of 10,710-10,844 is looking like a massive supply zone which bulls need to absorb to sail smoothly.

On the downside, if the index slips below 10,630 then it may initially lead to the test of 10,440 in the near term.

Here is a list of top three stocks which could give 10-16% return in the next 1 month:

Indian Hotels: Buy| LTP: Rs 135.65| Target: Rs 147| Stop Loss: Rs 127| Return 15%

This counter registered a breakout above its minor consolidation zone of 9 days on relatively higher volumes in the last trading session. Besides, as it is consistently trading above its 200 Day Exponential Moving Average for the last couple of trading sessions there is a bright chance that this counter can initiate a rally and jump to higher levels.

However, 139 looks like a hurdle which it should surpass as it has just broken out of its consolidation zone. In such a scenario, the initial target of Rs 147 can be swiftly expected. Positional traders are advised to buy with a stop of 127 for a target of 147.

Vodafone Idea: Buy| LTP: Rs 42.90| Target: Rs 49| Stop Loss: Rs 35| Return 16%

This counter appears to have registered a price and volume breakout as it witnessed massive gains on huge volumes in the last session which has erased losses of preceding 6 sessions in one attempt suggesting a bottom around 36.

Hence, positional traders are advised to adopt a two-pronged strategy of buying now and on declines between 40-38 levels for an initial target of 49. A stop suggested for the trade is below 35 on a closing basis.

Bank of Baroda: Buy| LTP: Rs 115| Target: Rs 126| Stop Loss: Rs 106| Return 10%

This counter appears to be consolidating in a zone of 114 – 107 with a positive bias. As sentiment in PSU Banking space is firming up, one can expect a breakout in this counter as chart structure is looking very positive.

Hence, positional traders in anticipation of a breakout should buy now and add further on declines between Rs 110 – 107 and look for a target of Rs 126. A stop suggested for the trade is below Rs 106 on a closing basis.

Disclaimer: The author is Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in. The views and investment tips expressed by investment expert on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

First Published on Nov 19, 2018 08:28 am

Stocks in the news: HCL Info, Oil India, Yes Bank, Quess Corp, Deepak Nitrite, Dr Reddy’s Labs

Here are the stocks that are in news today:

PNB Gilts Q2: Loss at Rs 33.18 crore versus profit at Rs 28.84 crore; revenue from operations falls to Rs 218 crore versus Rs 221 crore YoY.

Siemens Q4: Net profit at Rs 279 crore, revenue up 25.4 percent at Rs 3,939.2 crore.

Ashapura Intimates Fashion Q2: Loss at Rs 34.21 crore versus profit at Rs 3.44 crore; revenue falls to Rs 51.01 crore versus Rs 51.12 crore YoY.

HCL Infosystems: Company received orders from Central Excise & Central Goods & Services Tax to pay Rs 74 crore with interest and penalty.

Shalimar Paints – proposed rights issue of 3.37 crore equity shares at Rs 64.50 per share

Yes Bank: ICRA has affirms Long–term rating AA+ for the bank with negative implications.

Syndicate Bank: The issue price for preferential issue to government fixed at Rs 39.63 per share, bank can allot up to 18.4 crore shares to government against capital infusion of Rs 728 crore.

Sical Logistics: 29,18,570 equity shares at Rs 195 per share allotted to Giri Vidhyuth [India] on preferential basis.

AU Small Finance board meeting on November 22, to consider and decide on raising Basel II compliant Tier II Non-Convertible, Redeemable Bonds in INR on private placement basis

GHCL: Cyclone Gaja has impacted one of the spinning units of the company located at Manapparai and also salt Works located at Vedaranium in Tamil Nadu which caters to consumer products division.

Jiya Eco-Products: Stock will trade ex-bonus from Monday (Bonus issue 1:1).

Emerald Leasing Finance: Board meeting is scheduled on Monday to fix the record date for right issue, the ratio and the price for the equity shares of the right issue.

Oil India: Board on Monday to consider the proposal for buyback of the fully paid-up equity shares of the company, and issuance of debt securities in domestic/overseas markets.

Deepak Nitrite: Company confirmed that there has been search operations being carried on by the Income Tax Department at the company.

Mahindra & Mahindra: EPC Industrie Limited, a listed subsidiary of the company, has incorporated a subsidiary company namely Mahindra Top Greenhouses Private Limited in India.

Jet Airways: Tata Sons said any discussion with the airline company has been preliminary and no proposal has been made.

Dr Reddy’s Labs: Audit of formulations Srikakulum Plant (SEZ) Unit II, Andhra Pradesh by the US FDA, has been completed with zero observations.

Infosys: Infosys completed the formation of a joint venture with Temasek, the global investment company headquartered in Singapore.

Oriental Bank of Commerce: Board approved the proposal for raising of capital for an amount upto Rs 250 crore by offering upto 5 crore new equity shares of face value of Rs 10.00 each to the employees of the Bank through Employee Stock Purchase Scheme (ESPS) in one or more tranches.

Quess Corp: Company completed acquisition of 70 percent equity in Quess East Bengal FC Private Limited.

Tata Investment Corporation: Board approved a proposal to buyback upto 45 lakh equity shares of the company for an aggregate amount not exceeding Rs 450 crore being 8.17 percent of the total paid-up equity share capital, at Rs 1,000 per share.

IDFC Bank: ICRA downgraded its rating for non-convertible debentures of the bank from AAA (Stable) to AA+ (Stable).

Alankit: CARE reaffirmed the rating BBB+ (Outlook: Stable) assigned to long term bank facilities and A3+ assigned to short term bank facilities.

SRF: The unit in Viralimalai, Tamil Nadu of the technical textiles business (engaged in manufacture of belting fabrics) of the company has been damaged by Cyclone GAJA today. It has adequate insurance cover for the said unit.

Bulk Deals

GSS Infotech: Sarvottam Securities Private Limited bought 1,62,000 shares of the company at Rs 123.34 per share on the NSE.

Indiabulls Housing Finance: Principal Global Investors LLC sold 27 lakh shares of the company at Rs 767.26 per share on the NSE.

Info Edge (India): Aranda Invest(Mauri) PTE LTD sold 11,72,000 shares of the company at Rs 1,370.39 per share on the NSE.


China Market Rescue Unleashes Hot Money Seeking Risky Stocks

China’s drive to support its beleaguered stock market is helping pave a high-risk road for speculators chasing unlikely targets.

Shares tagged with a high-risk warning from stock exchanges, such as companies with negative net assets or two straight years of losses, jumped an average of 31 percent over the past month through Friday. That’s around double the pace of a broader rebound in small-caps, while the Shanghai Composite Index rose 7.8 percent in that time.

Market support measures announced since late October– including easing of trading restrictions, boosting liquidity and support for small companies — have helped fuel the frenzy, analysts say. Policies to encourage mergers and acquisitions have lured bets on struggling firms on the assumption they might be targeted by companies seeking to list in the A-share market via reverse takeovers.

“The shift in attitude from regulators has fostered a preference for these small, poor- performing shells,” said Yang Ziyi, fund manager at Shenzhen Sinowise Investment Co.

China Market Rescue Unleashes Hot Money Seeking Risky Stocks

DEA General Aviation Holding Co. and Harbin Gong Da High-Tech Enterprise Development Co., for example, jumped 71 percent and 70 percent through Friday respectively since the Shanghai Composite fell to a nearly four-year low on October 18.

“It’s a good investment strategy in a downbeat market,” said Sun Jianbo, president of China Vision Capital Management in Beijing. “As long as a firm has the value of being a potential shell, people will buy into its shares,” said Sun, adding that he is considering investing in such stocks.

Abnormal surges

The number of shares traded on the ChiNext Composite Index reached a record high of 8.7 billion on Tuesday, while turnover hit the highest since July. Although a small portion compared to the main board, it is seen as a reflection of the current small-cap excitement.

“To rescue the stock market, regulators are relaxing their grip over hot money,” said Xiong Qi, Beijing-based deputy head of research at Windsor Capital Management Co. “Small funds and retail investors are following” speculators, he said.

Recent rallies in the wider market have underlined the difficult balancing act regulators have between supporting stocks while trying to curb the excesses of speculation. The Shenzhen Stock Exchange on Tuesday said it would step up monitoring the “abnormal” surge of Hengli Industrial Development Group Co.. The shares jumped the next day and it rallied 319 percent over the past month to be the best performing A share as of Friday.

This came as the Shanghai Stock Exchange said on November 2 that it was tweaking its approach in order to lower “unnecessary” barriers in stock trading. That followed a slew of measures to boost liquidity to ease share pledging risks.

“After the recent changes, as long as there is no insider trading, it’s as if all trades can proceed more freely,” said Zhang Gang, a Central China Securities Co. strategist in Shanghai.

Rising Risks

Buying struggling stocks for their shell value is fraught with risk, analysts warn. China has simplified the rules for companies to list, while a planned new stock board for high-tech companies could potentially dampen demand for potential reverse-takeover targets.

The country’s stock exchanges have issued at least 10 delisting warnings to companies found to have breached accounting regulations this year, the highest amount in at least 9 years. The Shenzhen and Shanghai exchanges issued new rules on Friday, saying companies that commit serious public safety violations would be delisted. The Shenzhen exchange said it had begun the process of delisting Changsheng Bio-technology Co Ltd. , which has been at the center of a vaccine scandal. It halted trading Monday after its shares jumped 41 percent over the previous seven trading days.

Both DEA General Aviation and Harbin Gong Da High-Tech fell by their daily limit on Monday.

“The trade only works under the premise that such stocks will never be delisted, which is unrealistic,” said Shen Zhengyang, a Shanghai-based strategist with Northeast Securities Co.. “Such gains will never last long.”


Rangebound trade to continue; ICICI and HDFC Bank among 4 stocks that can return up to 13%

As expected Indian market traded in a wide range last week and confidence of bulls was seen at every dip. Continued foreign fund inflow and a stable rupee boosted the market sentiments and Nifty finally closed with the gain of 0.9 percent weekly at 10682.2.

Trading in a range is likely to continue in the coming week and dips are likely to be bought.

Fresh put writing in 10,700 strike price suggests the optimism of bulls. Multiple support can be seen looking at the data where approximately 3.35 lakhs contract has been added in 10,600 put option and cumulative open interest in 10,500 put option is raised up to 28 lakhs contract approximately.

Call writing, on the other hand, has shifted towards 10,800 strike price and no writing has been seen in 10,700 strike price suggesting support is shifting upward.

Technical setup also suggests Nifty is moving towards its 200-DMA (10755). However, for further fresh upside, 10,830 need to be taken out on higher side decisively. 10,480, on the other hand, will act as a major support for the week which is 61.8 percent retracement level of the last week range.

In a nutshell, Nifty is likely to trade in the range of 10,480-10,800 in the coming week with a positive bias and dips should be used for buying until 10,480 holds.

ICICI Bank | Rating: Buy| Target: Rs 411 | Stop loss: Rs 342 | Return: 12 percent

The stock has given breakout and trading at an all-time high. Cup and handle formation has emerged on the daily chart. Momentum indicators in
monthly, weekly and daily time frame are trading in a positive zone. The monthly chart is trading with higher top and higher bottom formation

and the current breakout is likely to take bullish move forward. Thus, the stock can be bought for short-term gain.

Britannia Industries | Rating: Buy | Target: Rs 6,600 | Stop loss: Rs 5,560 | Return: 11 percent

The stock has bounced back from 50-DMA on weekly chart after decent correction. RSI has bounced back from important support zone.

Monthly RSI also suggests a reversal after a recent correction.

Price has corrected till 61.8 percent retracement of latest swing move and is now trading above important moving averages on the daily chart. Momentum indicators suggest a bullish move to continue and the stock can be bought for short-term gain.

Raymond | Rating: Buy | Target: Rs 870 | Stop loss: Rs 723 | Return: 12 percent

The stock has violated the declining trend line and has witnessed a bullish crossover of important moving averages. RSI has started trading

in a positive territory that suggests a bullish momentum in coming days.

On the monthly chart, the stock has taken support at 50-day exponential moving average and has formed a bullish candle. Momentum indicators are also supporting the bullish reversal thus can be bought for short-term gain.

HDFC Bank | Rating: Buy | Target: Rs 2,280 | Stop loss: Rs 1,900 | Return: 12.5 percent

The stock has started trading above falling trend line and has closed above 50-day exponential moving average forming a long bullish candle.

Weekly RSI has taken support at an important level of 40. The monthly chart also shows a sign of reversal. The stock can be bought at present level and can be added on any decline till Rs 1,940 and can be held for short-term gain.

Disclosure: Rudra or its research analysts, or his/her relative or associate do not have any direct or indirect financial interest nor any other material conflict of interest at the time of stock recommendation in the subject company. Also, Rudra or its research analysts, or his/her relative or associates does not have actual/beneficial ownership of one percent or more securities of the subject company. However, Rudra or its research analysts, or his/her relative or associate may have positions In Futures & Options.

Disclaimer: The views and investment tips expressed by investment expert on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.


FIIs, MFs bet on 138 stocks in last 1 year; should you buy?

When it comes to hunting for stocks, investors depend on their financial advisors or do their own research. To that end, analysing the portfolio of foreign investors as well as mutual funds can certainly help retail investors shortlist a few stocks.

We analysed portfolios of foreign investors (FIIs) and mutual funds (MFs) not just for one quarter but for the last four quarters and found that there are as many as 138 stocks that are common in both the portfolios.

Also, it was noticed that FIIs and MFs increased their stake in these stocks in the last one year on a year-on-year basis.

Out of the 138, as many as 14 stocks saw a correction of 20-80 percent in the past one year. The list includes 8K Miles, CL Educate, Bharti Infratel, Bhansali Engineering, Balaji Telefilms, BHEL, Ambuja Cements, Dixon Technologies and Amrutanjan Health, according to data collated by AceEquity.


RBI board meet underway: How NBFCs, banking stocks are performing in trade today

RBI board meet underway: How NBFCs, banking stocks are performing

The Sensex and Nifty were trading in the green amid an ongoing board meeting of the RBI where the apex bank and the government are expected to reach a common ground over issues ranging from MSME credit to the central bank’s reserves, though both sides are in favour of reaching a common ground.

While the Sensex rose 102 points higher at 35,559 level, the Nifty gained 20 points to 10,702 level.

In early trade too, the Sensex opened 190 points higher at 35647 compared to its previous close of 35457 points. The Nifty too rose 49 points to 10,731 level.

Also read: NBFC liquidity to remain a thorny issue in RBI board meeting

One of the key issues is addressing the liquidity shortage hampering the Non-banking finance companies (NBFCs). The shortage could cause the credit markets to collapse putting the broader economy at risk.  These NBFCs are now demanding a special liquidity window to tide over their mismatches. Ideally, the NBFCs should sell their assets to banks or other strong entities to generate liquidity. If this option is fully exercised, only then there is a need to open a special RBI window.

The NBFC stocks were trading  mixed amid the ongoing meeting.

PNB Housing Finance was trading 0.89% lower,  Indiabulls Housing Finance dipped 2.32%, Dewan Housing Finance rose 2.86%, Mahindra & Mahindra Financial Services fell by 0.74 per cent, Ujjivan Financial Services declined 0.22 per cent and Shriram Transport Finance softened by 0.85 per cent on the BSE.

Shares of Bajaj Finance were trading lower by 0.80%. Edelweiss Financial Services was trading 0.95% higher, JM Financial rose 1.45% and IIFL Holdings gained 2.07%.

Stocks of NBFC companies have led the market lower since hitting their all time highs in August end.

On August 29, the Sensex and Nifty reached their lifetime highs of 38,989 and 11,760 respectively.

Since then, the Sensex has fallen 8.71% and Nifty is down 8.93% till date partly due to NBFC stocks taking a hit as IL&FS crisis led to shortage of liquidity among these firms.

Discussions are also expected between the government and the RBI related to restrictions on the public sector banks brought under prompt corrective action (PCA). There are close to a dozen public sector banks that are under Prompt Corrective Action (PCA), which means they cannot lend money to the industry. There is no doubt that the government has to commit more capital to make these banks healthy, but RBI can also lift some of the discretionary restrictions, like those on credit and operations. The RBI can easily allow banks with improved performance to start lending to good MSMEs.

The RBI has placed 11 public sector banks  and one private lender under its prompt corrective action list.

While stocks of PCA banks such as IDBI Bank (0.16%), UCO Bank (3.63%), Central Bank of India (0.80%), Indian Overseas Bank (0.67%) , Dena Bank (2.42%), Indian Overseas Bank (0.67%), Bank of Maharashtra (3.95%) United Bank of India (1.51%)  Allahabad Bank (0.92%) gained, the losers in the PCA list were Bank of India (0.74%), Oriental Bank of Commerce (1.36%), Dhanlaxmi Bank (1.84%).

Meanwhile, YES Bank (6.17%) , Tata Motors (2.68% )and Vedanta were the top Sensex losers.

ONGC, Bharti Airtel and Adani Ports were the top Sensex losers falling over 1% each.


Buy or sell: Top stock trading ideas by market experts which are good short-term bets

The Nifty 50 closed higher for the second consecutive session and decisively crossed its crucial 10,650 resistance level on November 16. Positive global cues and appreciation of the rupee supported the market.

The index remained in a positive terrain throughout the session and closed 65.50 points higher at 10,682.20. On the weekly basis, the S&P BSE Sensex and Nifty 50 rose around 0.9 percent each for the week ended November 16.

The index formed a bullish candle on the daily charts and Hanging Man kind of pattern on the weekly charts.

According to Pivot charts, the key support level is placed at 10,643.87, followed by 10,605.53. If the index starts moving upwards, key resistance levels to watch out are 10,707.87 and then 10,733.53.

The Nifty Bank index closed at 26,245.55, up 90.80 points on Friday. The important Pivot level, which will act as crucial support for the index, is placed at 26,134.53, followed by 26,023.46. On the upside, key resistance levels are placed at 26,344.73, followed by 26,443.87


Market timers are on the sidelines, which means you might want to jump in

Bear-market calls are rampant these days. Paul Tudor Jones says “really scary moments” are on the way. Jim Cramer warns there’s nowhere to hide in this “very serious correction.” Steve Cohen predicts that the bull is about to die a painful death.

Get the idea? Yeah, pretty sure you do.

So perhaps it is time to consider Baron Rothschild’s famous market take: “The time to buy is when there’s blood in the streets.” That’s gospel for contrarian investors, and despite the occasional market blip to the upside, there’s very little doubt that there’s blood flowing in the streets these days.

Which brings us to our chart of the day.

Amid all the reasons for doom and gloom, there’s one indicator that is pointing to a rally, at least for the short term: Market timers are sitting this one out.

According to this chart from Erin Swenlin of the DecisionPoint blog, the National Association of Active Investment Managers (NAAIM) exposure reading hasn’t been this low since 2016, and that is typically taken as a contrarian indicator.

“They will sometimes be ‘right’ in their exposure in the very short term,” Swenlin wrote. “But in the intermediate term, price reversals nearly always occur.”

Swenlin did warn, however, that if a trend of lower and lower readings unfolds, a bear market could be coming, as was signaled before “the dam broke” in 2007.

“I would expect a small rally or bounce,” she wrote. “But we need to be cautious if these extremely low exposure readings continue lower.”

Not much of a rally or bounce taking shape yet.

The market

Futures for the Dow Jones Industrial Average YMZ8, -0.35%  and the S&P 500 ESZ8, -0.38%  are looking rather sluggish this morning, as is the Nasdaq Composite NQZ8, -0.39% Gold GCZ8, -0.18%  is also in the red, as is silver SIZ8, -0.26% Crude oil CLZ8, +0.04% was providing a glimmer of green this morning before turning mostly flat to lower.

Overseas, Asia markets ADOW, +0.30%  and Europe markets SXXP, +0.17%  are doing just fine, with most major markets in the green.

The buzz

Last week was a chart-lover’s paradise, especially if said chart-lover was looking for warning signs in this unsteady stock market. Apple AAPL, -1.80% bitcoin BTCUSD, -5.75%  and oil CLZ8, +0.04%  were all ringing alarm bells in recent sessions, and they’ll surely be closely eyed by traders in the coming sessions.

Facebook FB, -0.5[“source=cnbc”]9%  is back in the news and looks set to stay there this week. In the latest development, CEO Mark Zuckerberg reportedly has adopted a more aggressive management style in recent months, driving away many top execs amid sinking employee morale. He apparently also blamed COO Sheryl Sandberg for the fallout of the Cambridge Analytica scandal, making her wonder if her job was secure, according to The Wall Street Journal. About a dozen high-profile execs have left Facebook this year.


Stock Market Investment: Never do these 5 things when the markets are volatile

Volatility is not the cause but the manifestation of the problem. Here are some basic things that you need to avoid when you are in the midst of volatile markets.
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In a volatile market, you may find that your investment stocks are losing value more than they deserve.

How do we define volatility in the stock market? Intuitively there are some clear indications of a volatile market. For example, in a volatile market your stop losses will get triggered both on the short side and the long side. In a volatile market, you find that your investment stocks are losing value more than they deserve. You will also find that volatility makes the VIX ratio shoots up, which is why it is also called the Fear Index. It shows the amount of fear in the market and that results in volatility. What we need to understand here is that volatility is not the cause but it is the manifestation of the problem.

The chart above captures the movement of the Nifty and the Volatility index since August 01st 2018. For easier comparison, both the numbers have been indexed to the base of 100. It is clear that as volatility has gone up from the third week of September, the Nifty has drifted down. Even over longer periods of time, the Nifty and the VIX are inversely related. The question is about your investment strategy. Let us look at the five things that you must avoid when you are in the midst of a volatile market. Here are 5 things to avoid:

1. Don’t rush for the exits the moment you see volatility

You don’t need to rush for the exits the moment you see volatility. Remember that volatility is part and parcel of the market. More often than not, the volatility is caused by external factors and the volatility will quell along with that trigger. For example, in the current situation, the market volatility has been caused by the rupee weakness and the IL&FS crisis. Both are temporary. It is not like 2008 where the Lehman crisis was raising questions about the entire financial sector in the world. When you exit in a hurry, you lose out the long term potential of a stock. The Nifty may be down since the peak but since the beginning of the year it is only marginally down. When the markets turn volatile, it is time to take stock of your portfolio and stick to the winners and dilute your holdings in the stocks that are most vulnerable. Don’t just convert everything into cash.

2. Don’t be too enthusiastic about bottom fishing in volatile markets

It is normal for investors to feel that when they were willing to buy Stock A at Rs 3000, why they must not buy the same stock at Rs 2000. While this is a quality company and you may be right, there is an important point to remember here. When the markets crack over 10% in a short span of time with a rise in volatility, the markets can never show a V-shaped recovery. The recovery will be gradual and calibrated over time. Typically, markets recover when the last weak hand is exasperated and exits the market. Also markets bottom out in the midst of disinterest and not in the midst of volatility. You will surely get better prices on most stocks. Be careful of how you bottom fish in such markets.

3. Your SIP commitments must not be tampered

If you are into a monthly systematic investment plan of an equity fund, just don’t worry about the volatility. The SIP is designed to benefit from the volatility because when NAV is up you get more value and when the NAV is down you get more units. This will benefit you both ways through the power of rupee cost averaging. Most equity SIPs have done very well over longer periods of time irrespective of the volatility. The long term SIP returns of equity funds are much better than the returns on lump sum investments because the phased approach captures the benefits of volatility better.

4. Don’t jump into sectors that caused the volatility in the first place

This is a very important take-away for the investor. Look at the sectors that drove bear markets in the past, like cement, technology, real estate, capital goods etc. They were never the stocks that triggered the recovery. For example, most real estate stocks are still quoting at a fraction of the price which they quoted in 2007 or early 2008. Let us look at the present scenario. The correction was triggered by problems in the NBFC space and the mid cap space. These companies were exposed to financial risk and had lower standards of corporate governance. They have longer term problems and are unlikely to lead the recovery. At best, they can experience a short-lived burst of upward movement in a largely downward trend.

5. Don’t stretch your luck too far with futures positions

When markets are volatile, the last thing that you should be doing is leveraging yourself. There are various types of leveraging you should avoid. Avoid borrowing and investing just because the markets are looking cheap. You could take a hit both ways. Secondly, avoid too much of short trading. Your stop losses will get triggered and you will end up in losses on most occasions. Thirdly, futures may look to be a very appealing method but here again you are leveraged. Losses could really multiply in a volatile market.

These are some of the basic things that you need to avoid when you are in the midst of volatile markets. Otherwise, don’t tinker with your long-term financial plans too much.


Closing Bell: Sensex ends over 300 points higher, Nifty above 10,750; consumption, metals gain big

Avoid FMCG, bet on banks, IT; top 10 stocks to buy for next 12 monthsIt’s a strong start to the week, with the Sensex ending over 300 points higher, while the Nifty surged past 10,750 on the back of intense buying.

Buying counters were buzzing among sectors such as automobiles, consumption, energy, infrastructure, IT, metals and pharmaceuticals as well. In the broader markets, the Nifty Midcap index rose around half a percent.

Financials saw a rally as news reports indicated that the central bank was open to tweaking/review of PSU banks’ prompt corrective action (PCA) plan.

At the close of market hours, the Sensex closed up 317.72 points or 0.90% at 35774.88, while the Nifty was higher 81.20 points or 0.76% at 10763.40. The market breadth was narrow as 1,330 shares advanced, against a decline of 1,278 shares, while 160 shares were unchanged.

Yes Bank and ITC were the top gainers, while ONGC, ICICI Bank, Indiabulls Housing and GAIL lost the most.