The month of October till now has been comforting to the Indian stock markets as well as investors. Even after the foreign institutional investors (FIIs) investing net Rs 555.20 crore till now, experts still feel that the equity markets does not look strong on the short term basis. Their focuses continue to be on the long term investments and are advising the same to the investors.
Ravi Rastogi from Globe Capital said, “Stock market is very low on depth and there are no major developments that can push markets higher. We are expecting the markets to trade in a range and every time index rises profit booking will be seen. The best strategy right now would be to invest for long terms in the infrastructure sector.” “Investors should buy in a staggered way and not pour their entire funds in one time. Also it is best for investors to wait for the markets to fall before buying anything. Investors should also keep a close watch on capital goods sector as it can be the next big performer among its peers,” he added.
Expressing concerns over the increasing volatility, Krunal Dayma from First Step Capital added, “Going forward we are expecting very choppy stock markets which would trade in a fixed range. Investors should avoid short term trading but if have to then should trade within the market range. If investors are will to hold on to stocks, then they can purchase every time the index falls. We feel metal and mining sectors to be the best bet in the current market. The sectors are showing a strong reversal after being heavily corrected. Apart from that capital goods sector also looks good for long term investments.”
Fortune Fiscal’s Jagdish Thakkar advices investors to be extremely cautious while trading the markets. “Markets would continue to be volatile and investors should use every rally to book profits. Investors should trade very carefully and if possible avoid any fresh buying on the current levels. They should wait for some time and let markets correct and stabilise before putting money in the stocks. Banking sector is where investors can look for opportunities to invest for longer term.”
Kunal Saraogi from Equity Trendz feels it is best that people should completely avoid any kind of short term trades as the direction of the markets is still not very clear. He added, “It is best to stay away from markets for some time rather than sustaining losses. Investors should wait and watch till the time the market volatility eases a little. Once the markets calm down, investors can opt for long term investments in metal and pharmaceutical shares.” While the Government and the RBI are doing everything possible to attract more FIIs, all experts feel it is best to avoid trading in the Indian stock markets. Wait and watch is the strategy which investors should adopt.