Indian stock markets turned extremely volatile on Tuesday, with the BSE Sensex trading in an 800-point range and the Nifty moving in over 200-point band. The rupee also moved up and down against the dollar. Increased volatility often hurts investors, clouding their decision-making abilities, analysts say.
NDTV Profit spoke to several market experts amid erratic movements to find out the best way to trade in high volatile markets.
CK Narayan of Growth Avenues said the mood of the market is sombre at current juncture and one should exercise patience. He added that in the context of global mayhem. Nifty futures will have support around 7,620-7,625. Mr Narayan said long positions are getting squared off and short positions are building up which is driving markets lower.
Mahantesh Sabard, deputy head of research with SBICAP Securities says that in the worst case scenario, Nifty can correct 10 per cent from current levels. Mr Sabard added that exchange traded funds sold Indian shares and as the redemption pressure mounts on FIIs then long only funds will also sell Indian shares.
Gautam Chhaochharia, head of research at UBS told NDTV that there's no major crisis scenario in emerging market equities. UBS is "overweight" on banking, pharma, telecom and oil & gas stocks.
S V Prasad, chairman of Chime Consulting said retail investors should be positive on Indian markets as long as India growth story still intact.
Nirav Sheth of Edelweiss Securities said stock markets will benefit from low inflation and fall in crude oil prices in the second half of the current financial year. Edelweiss is "overweight" on SBI, Bank of Baroda and Punjab National Bank from the PSU banking space, he added.
Deven Choksey of KR Choksey Securities ruled out a huge recovery in markets at the current juncture. Fundamentally, Indian markets are better placed as compared to others, he added. Mr Choksey said investors should buy select NBFCs and infra companies, which are looking attractive.
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