Stay Cautious: Dealers Say!

The markets closed on a downward side for the second straight day today. Manish Baid, MD, GCM Securities says "the market today was a bit choppy and opened on the down side. It is probably the hangover of the election results, the euphoria has gone down. It is not coming back to the level and probably I think it would start drifting down because no triggers as such have reached from two weeks now. After 2 weeks, the hunt for the results would start kicking in and so we see some direction over there and then of course the election season would start. Right now I think that markets would be choppy with a bias towards the downside.” Asked to put a range for the Nifty he says “it is going above 6350 and downside would be something around 6050 or 6150, that is the broad range.” The BSE Sensex has closed 100 odd points down and the Nifty has closed 25-30 points down. “I think that the long stands can be avoided right now. The stocks that are rallying are also the top 100 stocks and apart from that there is not much movement in other stocks” adds Baid.  Banks have been doing good from the last 5 trading sessions. ICICI bank, HDFC bank, SBI are doing good. Baid is a bit of negatively biased on banks because valuations are quite high. His advice is not to go long, be cautious and refrain from the euphoria which has been created. Retail investors have to wait on the sidelines as this is not the right time to invest according to him.