Zee Business has been maintaining that current rally in the global stock markets that also spans Dalal Street, is fueled by liquidity. However, even liquidity has some limitations and it can’t keep the upside momentum beyond a certain time period if the fundamentals don’t change in the positive direction. Zee Business Managing Editor Anil Singhvi asked share market investors to keep this in mind and maintain ‘buy on dips’ strategy till the Nifty is above 10,000 mark and the Bank Nifty is above 20,500 levels.
Advising share market investors to keep an eye on the index instead of the market performance, Anil Singhvi said, “In the liquidity fueled stock market rally, it’s difficult to predict how long the liquidity will keep the positive bias in the markets. So, it’s advisable for the share market traders and investors to keep an eye on the indices. In my view, one should continue buying on every dip till the NSE Nifty makes closing above 10,000 levels and Bank Nifty above 20,500 mark.”
See Zee Business Live TV streaming below:
Singhvi said that the fundamentals that led to massive selloff in the global markets in March 2020 are still there and hence liquidity available in the markets is key. But, even liquidity has some limitations and hence an investor needs to keep tracking Nifty and Bank Nifty and stop buying once either of the two indices makes a closing below the given levels.
Watch full coverage in video below:
लिक्विडिटी ही बाजार की सबसे बड़ी ताकत…अनिल सिंघवी ने कहा- इंडेक्स पर रखें ध्यान…जब तक 10000 और 20500 के नीचे बंद ना हो तो कमजोरी का डर नहीं#EditorsTake #NSE #BSE #Sensex #Nifty #USMarket @AnilSinghvi_ pic.twitter.com/nd4Lkuq2Zs
— Zee Business (@ZeeBusiness) June 26, 2020
Anil Singhvi also advised stock market investors to keep an eye on the US Fed balance sheet and said, “Liquidity flow in the market is coming from the US Federal Reserve as it’s interest rate is almost zero. Till the Fed maintains its dovish stance on the interest rates, liquidity is expected remain maintained in the markets. However, Fed can keep the interest rates around zero for a certain period until it’s not getting reflected into its balance sheet. So, if there is continued dip in the Fed balance sheet that we witnessed last week then it’s high time for the market investors to become alert.” However, Singhvi said that it won’t be easy for a normal stock market investors to keep tracking such major triggers. So, it’s better to keep the 10,000 support number for NSE Nifty and 20,500 mark for Bank Nifty.