Analysts sound alarm as ‘lot of gambling happening in low grade stocks’

New Delhi, Nov 29 (IANS) There is a lot of gambling happening in the market now in low grade stocks and these should be avoided, says V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Investors should take cues from the wisdom of the investment legend Charlie Munger who died on Tuesday, Vijayakumar said.

The American businessman, investor, and philanthropist had advised investors: “Don’t be gamblers, be patient investors.”

Investors should buy quality stocks which are fairly priced, and wait patiently. There is value in largecap banking, IT and autos for patient investors, Vijayakumar said.

A big move in the market is likely after the state election results are known. Perhaps the exit polls tomorrow evening may provide some clues, he added.

Since the global market backdrop continues to be favourable, the rally in India is likely to continue. The drop in US 10-year bond yield to 4.3 per cent and the dollar index dropping below 103 are positive for equity markets. FIIs have turned buyers responding to the changed reality, he added.

Vaishali Parekh, Vice President – Technical Research, Prabhudas Lilladher, said Nifty finally indicated a breakout above the tough resistance barrier of 19,850 zone to improve the bias and further is anticipated to retest the previous peak zone of 20,200 levels in the coming days.

The index has the next visible targets of 20,000 level and thereafter 20,222 level with 19,800-19,850 zone maintained as the important support zone from current levels. The support for the day is seen at 19,800 while the resistance is seen at 20,000.

BSE Sensex is up 380 points at 66,554 points on Wednesday.

(Sanjeev Sharma cam be reached at Sanjeev.s@ians.in)

–IANS

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