The Hindu Business Line : Stay out in short-term, say brokers

Regarding a long-term investment strategy, opinions were not strictly in favour of a quick and aggressive bargain hunting, but a measured approach in picking stocks keeping individual risk appetite in mind.

According to Mr Dinesh Thakkar, CMD of Angel Broking: “While it would be difficult to time the bottom of the markets, considering that it is currently being driven more by sentiments than fundamentals, we would like to reiterate that investors should continue investing into equities in a systematic manner, as we remain confident that equities would retain the honour of the best performing asset class over the long-term.”

further downside

Ms Shina Mukadam, Head of Research at IDBI Caps, said that her team was advising against leveraged and long positions as it apprehends that there could be further downside in the local market. “If the Nifty takes a support at 5,450 points level and stays above that for a couple of days, then the investors may start gradual and selective picking up of stocks. But aggressive buying is not what we are suggesting,” she added.

For those trader clients, who have made profits recently in shorting strategies, IDBI Cap has suggested that one cannot rest on the past laurels; one needs to be more careful and nimble footed in this tricky market, Ms Mukadam said.

More declines

Mr Manish Sonthalia, Vice-President Equity Strategy of Motilal Oswal also felt that charts indications did not rule out more declines.

“Our suggestion to the traders is one of following the technicals and sticking to the pre-set limits.” Motitlal Oswal is suggesting retail investors to stay out of trading. “Wherever retail investors themselves see value or bargain, they may go in for long-term investment only considering risks and their pockets,” he added.

Mr V.K. Sharma, Director and Research Head of Anagram Securities, said, “Currently we were advising our clients to stay out for some time – maybe a week or so. We are giving intra-day calls and telling our clients to square off at close.

“Though we have a very positive outlook for a couple of sectors, in view of the falling levels of the rest of the market, we are withholding the buy calls for them for the time being,” Mr Sharma said.

Anagram said that it had been prodding HNI clients since February to offload their holding systematically.

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