Stock Market Today – Tips: After the US market crash post-Federal Reserve minutes being revealed that forecast a slow economic recovery in the US, Zee Business Managing Editor Anil Singhvi has said that not too much should be read into this as it is mere profit-booking as both Nasdaq and S&P had been trading at life-time highs. The Market Guru dubbed this correction as a ‘running correction’. On a profitable strategy, Singhvi advised traders and investors to know the major levels of the market and maintain a strict stop-loss in the current trending markets.
Dubbing this US stock correction as mere profit-booking, Anil Singhvi said, “Both Nasdaq and S&P were trading at life-time high and they were waiting for a trigger for profit-booking. The US Fed minutes predicting slow US economic recovery worked as trigger for that. If you take my opinion, it’s just a running correction where market witnesses profit-booking after 3-4 per cent surge. In this profit-booking, market corrects around 1 to 1.5 per cent and then it starts scaling again.”
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Advising Indian traders and investors as to what should be their ideal trade strategy the Zee Business Managing Editor said, “Current stock market is a trending market and, in this trend, one should know the important levels of various indices and stocks and rather than looking at the market movement, they should keep strict stop-loss and wait for their targets.”
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— Zee Business (@ZeeBusiness) August 20, 2020
The Market Guru maintained that in trending markets, high volatility should not be a cause of concern because ideal way of trade is to maintain stop-loss and wait for their targets. He said that this is the time when a small investor is in danger of losing money because the panic button can easily get triggered if the traders start looking at the market movement instead of the major levels of the market and their stop loss.