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Showing posts with the label market volatility

India-Pakistan conflict stressing you out? Here are 6 ways to drone-proof your portfolio

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[hfe_template id='11223'] [ad_1] With Pakistan breaching the ceasefire agreement, stock market investors are worried whether India is headed for another round of military escalation. But as the saying goes, buy on the sound of cannons, sell on the sound of trumpets. It’s a wartime investing mantra as old as the markets themselves, and it’s ringing louder than ever. Warren Buffett’s classic wisdom echoes too—be greedy when others are fearful and fearful when others are greedy. And if the history of India-Pakistan conflicts is any guide, markets have taken the hits and bounced back harder. Bajaj Broking has advised retail investors to avoid impulsive exits based on short-term geopolitical jitters. According to the brokerage, such downturns have historically been temporary. For long-term investors, these moments can actually present an opportunity to pick up fundamentally sound stocks at discounted valuations. Analysts, meanwhile, are recommending traders keep their leverag...

5 ways to make money in a stock market hijacked by Trump’s mood swings

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[hfe_template id='11223'] [ad_1] The Indian stock market has had a wild ride in 2024 with the headline indices Sensex and Nifty flipping up and down. The market began the year on a subdued note, but then spiralled downwards reacting to announcements from Donald Trump. But then, that is not all. There were also short rallies in between, again completely driven by what was coming out of the US. In 2025 so far, Sensex was down 2% and the Nifty index fell just over 1%. President Donald Trump’s unpredictable moves, like slapping tariffs on trading partners one day and pausing them the next, have left traders and investors scratching their heads. No one is sure how the rest of the year is going pan out. Despite this chaos, experts say there’s still money to be made if investors play it smart. Here are five ways in which they can do so. Markets reacting to Trump's flip-flops There is a sense that investing right now can feel daunting. The market jumps or dips based on headl...

5 power-packed tips for investors to thrive in a falling market

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[hfe_template id='11223'] [ad_1] The broad-based stock market indices are down anywhere between 15–20% from their peaks reached in September 2024, while the small- and mid-cap indices have declined by up to 25%. The sweeping tariffs announced by the US last week have spooked markets globally, including the Indian market. Amid this declining trend, many equity mutual fund investors, especially those experiencing such volatility for the first time are likely to face a difficult question: what should they do with their equity mutual fund investments? While the exact answer may vary from investor to investor, here are five tips to help investors not just survive but thrive in a falling market. 1. Remind yourself that volatility is an inherent characteristic of equities One of the most important characteristics of equities is that they offer higher long-term return potential compared to most other asset classes, but with a higher risk or volatility. Generally, investors focus...

Sensex, Nifty crash worst since 2024 Lok Sabha debacle. What to do when the market turns into madhouse

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[hfe_template id='11223'] [ad_1] In a brutal Monday meltdown, the Nifty50 crashed 5% intraday—marking its worst single-day performance since the Lok Sabha election result debacle on June 4, 2024—triggering flashbacks of past market horrors and raising fresh fears of a bear market knocking at the door. The Sensex also tumbled nearly 4,000 points in early trade, slipping below the 71,500 mark but ended 2,227 points lower at 73,138. Blue-chip bloodshed was rampant: Tata Steel and Tata Motors plummeted 5-7%, while heavyweight stalwarts like Reliance Industries, HDFC Bank, and ICICI Bank slid 3% each in an all-out selloff that spared few. Also read | Nifty catches Wall Street's fever: Bear market growls turn into roars after massive selloff This was only the second time since the Covid crash of 2020 that Indian markets fell more than 5% in a single day. With the Nifty now down about 15.66% from its peak, the benchmark index is 1,140 points away from officially entering be...

Monday dawns, stock markets hold their breath

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[hfe_template id='11223'] [ad_1] Mumbai: Should investors worldwide brace for another 'Black Monday' - a reference to October 19, 1987, when stock markets around the world crashed simultaneously? That's what CNBC host Jim Cramer predicted late last week after two days of sharp selloffs on Wall Street, sparking a debate on social media on the likelihood of such an event following the tariff war unleashed by US President Donald Trump. "If the President doesn't try to reach out and reward these countries and companies that play by the rules, then the 1987 scenario...the one where we went down three days and then down 22% on Monday, has the most cogency," Cramer said on his show. On Black Monday, the Dow Jones Industrial Average in the US plunged 22.6% - the steepest one-day percentage drop in its history. The selloff was triggered by a mix of overvalued markets, rising interest rates and panic selling amplified by computer-driven trading. The stock...

Tariff effect, RBI MPC outcome among 9 factors that will steer D-Street this week

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[hfe_template id='11223'] [ad_1] Last week, benchmark indices Sensex and Nifty 50 dropped 2.6% each, with the Nifty closing at 22,904—slipping below the 23,000 mark amid a global sell-off triggered by US President Trump’s tariff measures and renewed fears of an economic slowdown. The broader markets also came under pressure, as the Nifty Midcap100 and Nifty Smallcap100 declined by 2% and 2.6%, respectively. IT stocks led the decline, plunging 9% on concerns of reduced US tech spending, while the Nifty Metal index tumbled 7.5% on fears of global trade disruptions. The auto and pharma sectors also registered losses of 3% each. “Nifty broke below the crucial support of 23,141 and went down to as low as 22,857. From the recent swing high of 23,869, Nifty has registered a fall of more than 1,000 points. The next support for Nifty is seen near 22,700, where the 61.8% retracement of the entire rally from 21,964 to 23,869 is placed. On the higher side, the previous support of 23...

Wall St Week Ahead-Fed on tap for tariff-jolted market as investors look for calm

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[hfe_template id='11223'] [ad_1] A U.S. stock market rocked by President Donald Trump's back-and-forth on foreign import tariffs faces a Federal Reserve meeting in the coming week, as investors look for hints about further interest rate cuts that could restore some calm to markets. A weeks-long slide in stocks accelerated in recent days with the benchmark S&P 500 on Thursday confirming it was in a correction, ending down over 10% from its February 19 record high. While stocks ended the week on a positive note, with the S&P 500 rebounding sharply on Friday, the decline had wiped off more than $4 trillion in market value, with some of Wall Street's highest fliers such as Nvidia and Tesla getting pummeled. The Fed's latest monetary policy meeting comes as Wall Street is increasingly worried about an economic slowdown, with concerns exacerbated by Trump ramping up his tariff war. The U.S. central bank is widely expected to hold interest rates steady on ...

Trump defends tariffs before corporate America as stocks sell off

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[hfe_template id='11223'] [ad_1] U.S. President Donald Trump defended his use of tariffs and said they could multiply as he met on Tuesday with the CEOs of America's biggest companies, many of whom have watched their market value crater over recession and inflation fears. The Republican president spoke to about 100 CEOs at a regular meeting of the Business Roundtable, which includes the heads of Apple, JPMorgan Chase and Walmart . The event followed a private Trump meeting with technology company executives at the White House on Monday. U.S. stocks on Tuesday extended a selloff that has dragged the benchmark S&P 500 down 5.3% so far in 2025, with investors rattled over increased tariffs on imports and souring consumer sentiment. Monday's drop in the S&P 500 was its largest this year and followed an interview over the weekend in which Trump declined to rule out a recession resulting from his trade policies. He clarified those comments on Tuesday, telling...

Where is Jim Rogers investing? - "I’ve sold all my US stocks and bet on US dollar as safe haven"

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[hfe_template id='11223'] [ad_1] Veteran investor and renowned commodity guru Jim Rogers has made a bold move amidst global uncertainty – he’s sold all his US stocks and is betting on the US dollar as a safe haven. In an interview with ETNow, Rogers shared his thoughts on market volatility, political unpredictability, and his strategic investment decisions. Navigating Uncertainty in the Trump Era Rogers didn't hold back when discussing the challenges of predicting market trends under President Donald Trump's leadership. “Well, if you know what Mr. Trump is trying to do, you are way ahead of everybody else. Mr. Trump does not know what he is trying to do. He changes every day,” Rogers remarked, highlighting the unpredictability that influenced his investment decisions. He further elaborated, “My problem with Mr. Trump is that he changes his mind whenever he sees something on television. So, with some people like Margaret Thatcher or Nehru or some people in the pas...

Volatility today, rewards tomorrow: Why Mohit Khanna says investors will be happy

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[hfe_template id='11223'] [ad_1] Despite prevailing market volatility, many analysts believe that investors putting money into equities today are likely to be satisfied in the long run. In an interaction with ET Now, Mohit Khanna of Purnartha Investment Advisers expressed his confidence in the market’s recovery trajectory, emphasizing that while near-term fluctuations may persist, the long-term outlook remains optimistic. Khanna acknowledged that predicting the exact market bottom is difficult, but he remains convinced that the worst of the correction may already be behind us. “We expect some volatility in the near term, but I can tell you one thing—clients investing money today will be very happy two years from now,” he stated. The key reason for this confidence is the India growth story, which Khanna believes will continue to play out strongly over the next couple of years. The recent correction, he explained, has helped remove excess froth from the market, making valu...

Reduce trading size on Budget day: Zerodha’s Nithin Kamath advises caution to traders

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[hfe_template id='11223'] [ad_1] As India gears up for its FY26 Union Budget on February 1, Zerodha co-founder and CEO Nithin Kamath urged traders to exercise caution ahead of the Budget announcement on Saturday, warning of heightened market volatility. Kamath, in a post on X, formerly known as Twitter, advised traders to reduce their position sizes if they cannot refrain from trading altogether on such event-heavy days. “The budget day is tomorrow, and yes, there is trading on a Saturday. Markets are bound to be volatile, so trade with caution,” Kamath posted on X. “If you are an active trader, I guess you should reduce trading size during event days. That is, if you cannot stop yourself from trading.” So, the budget day is tomorrow, and yes, there is trading on a Saturday. Markets are bound to be volatile, so trade with caution. If you are an active trader, I guess you should reduce trading size during event days. That is, if you cannot stop yourself from trading. By t...

Dalal Street Week Ahead: Technical indicators signal caution as Nifty faces resistance at 23,700

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[hfe_template id='11223'] [ad_1] The Indian equities continued to trade with a corrective undertone as they ended the week on a mildly negative note. Over the past five sessions, the Nifty continued facing selling pressure at higher levels while staying mainly in a range. The markets remained in a very defined trading range and stayed decisively below key levels. The trading range widened a bit; the Nifty oscillated in 449.45 points before closing towards its lower end of the range. The volatility increased; the India VIX inched higher by 6.33% to 16.75 and stayed at elevated levels. While not showing any major reversal attempts, the benchmark index closed with a net weekly loss of 111 points (-0.48%). ETMarkets.com The coming week will be a 6-day trading week. Both NSE and BSE shall conduct a special full-day trading session on Saturday, February 1, 2025, on account of the presentation of the Union Budget. As we commence a new week, it is important to observe that the m...

Nifty struggles below 200-DMA amid narrow range and low volatility

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[hfe_template id='11223'] [ad_1] After suffering a brutal selloff in the week before this one, the Nifty spent the truncated week struggling to stay afloat just below the key resistance levels. With just four working days, the Nifty resisted each day to the 200-DMA and failed to close above that point. The trading range got much narrower, and the Nifty oscillated in just 291.65 points before closing with a minor gain. The volatility also cooled off as compared to the previous week. Against the surge of 15.48%, this week saw India VIX declining by 12.17% to 13.24. Following strong consolidation, the headline index closed with a modest weekly gain of 225.90 points (+0.96%). ETMarkets.com From a technical perspective, we are now at a very crucial juncture. On the one hand, the Nifty has closed below the 200-DMA placed at 23,861. On the other hand, the Index is just above the 50-week MA at 23,568. Rounding off, this puts Nifty in a very fragile range of 23,860-23,500. The Ni...

FPIs log Rs 21,789 crore inflows in December so far, reversing months of outflows

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[hfe_template id='11223'] [ad_1] Foreign portfolio investors (FPIs) recorded net equity inflows of Rs 21,789 crore in December so far, marking a significant reversal after months of heavy outflows. With this surge in December, FPIs have experienced a total net inflow of Rs 6,770 crore in 2024, compared to outflows of Rs 15,019 crore at the end of November. This turnaround comes after heavy off-loading in domestic equities in the last two months, with net outflows of Rs 21,612 crore in November and Rs 94,017 crore in October. In the first half of December, nearly 83% of FPI flows were concentrated in three sectors — financial services, IT, and real estate. These sectors attracted inflows of Rs 7,424 crore, Rs 6,754 crore, and Rs 4,689 crore, respectively. At the same time, FPIs sold Rs 5,337 crore worth of oil and gas stocks, Rs 1,823 crore of auto stocks, and Rs 1,655 crore of FMCG shares. Despite these shifts, telecom and services, which had seen outflows in November, s...

Wall St Week Ahead-Investors hope for 'Santa Claus' rally as stocks lose steam

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[hfe_template id='11223'] [ad_1] With December so far delivering Scrooge-like returns in an otherwise stellar year for U.S. stocks, investors hope the tail end of 2024 offers some holiday cheer, but warn of potential headwinds. The benchmark S&P 500 is up more than 23% for 2024, even after a major stumble this week, and Wall Street has historically often enjoyed a strong annual close. Since 1969, the last five trading days of the year combined with the first two of the following year have yielded an average S&P 500 gain of 1.3%, a period known as the "Santa Claus Rally," according to the Stock Trader's Almanac. But this year, there are signs Santa Claus may disappoint. The S&P 500 on Wednesday suffered its biggest one-day drop since August after the Federal Reserve caught investors off guard by signaling fewer-than-expected interest rate cuts in 2025. The market also looks less healthy beneath the surface: Eight of the 11 S&P 500 sectors ...

Dalal Street Week Ahead: Will Nifty extend gains or re-enter consolidation?

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[hfe_template id='11223'] [ad_1] The markets had a wide-ranging week once again; however, they ended near its high point this time. The Nifty had ranged sessions for four out of five days; the last trading day of the week saw the Nifty swinging wildly before closing near its high point. The trading range also remained wider; the Index oscillated 611 points over the past sessions. The volatility, though, took a back seat. The India VIX came off by 7.69% to 13.05 on a weekly basis. The Nifty closed a notch above its immediate resistance points; the headline index finished the week with a net weekly gain of 90.50 points (+0.37%). Agencies The week was set to end on a negative note had the markets not surged higher on Friday. From a technical perspective, Nifty has resisted the 100-DMA placed at 24709 over the past several days. Following a massive rebound that the Nifty witnessed from lower levels, the Index has closed a notch above this important resistance level. For this...

Dalal Street week ahead: Sector rotation in focus; where to find opportunities in market

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[hfe_template id='11223'] [ad_1] Market Overview The markets continued to stay tentative over the past five days, trading with a weak undertone as the Nifty digested the reaction to the US election outcome. Although there were two days of a strong technical rebound, this was subsequently sold into, which kept the Nifty in a broadly defined range. The trading range was wider than usual, with the Nifty oscillating in a 721-point range. Volatility cooled off, and the India VIX declined by 6.95% to 14.47 through the week. Following this ranged trade with a weak underlying bias, the headline index closed with a net weekly loss of 156.15 points (-0.64%). ETMarkets.com Technical Analysis From a technical perspective, the markets are not out of the woods yet. The Nifty has violated the 20-week moving average, which currently stands at 24,775. This level also coincides with an extended trendline that initially acted as support but now acts as resistance. Below this point, there a...

Markets face challenging setup; focus on resilient stocks for safety

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[hfe_template id='11223'] [ad_1] The over-deviated markets continued to extend their losses for the fourth week in a row. Over the past five days, barring a few feeble attempts to stage a technical rebound, the Nifty remained largely under sustained selling pressure. The markets extended their downsides while giving up key supports on the daily charts. The trading range widened again; the Nifty oscillated in a wider 904-point range before ending with a decent cut. The volatility also spiked; the India Vix surged by another 12.23% to 14.63 on a weekly basis. Following a largely bearish setup throughout the week, the headline index closed with a net weekly loss of 673.25 points (-2.71%). ETMarkets.com The coming week is a truncated one; Friday is not a trading holiday but it will just have a very short, one-hour ceremonial Mahurat Session. Overall, the volumes are expected to remain low given the festive season. The Nifty has violated the 100-DMA on the daily chart which s...

F&O Radar| Deploy Bear Put Spread in Nifty to gain from bearish stance, market volatility

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[hfe_template id='11223'] [ad_1] The Nifty Index opened flattish on Tuesday but bears were in full control right from the beginning of the session. The selling intensity increased in the second half and the index broke 24,450 zones. It formed a bearish candle on a daily frame and closed below 24,500 zones with losses of around 310 points. “Now, till it (the index) holds below 24,500 zones, weakness could be seen towards 24,350 and then 24,200 zones, whereas hurdles are placed at 24,750 and then 24,850 zones,” said Chandan Taparia, Senior VP, Equity Derivatives & Technicals, Wealth Management at Motilal Oswal. On the option front, the maximum Call OI is at 25,000 then 25,200 strike while the maximum Put OI is at 24,000 then 23,500 strike. Call writing is seen at 24,600 then 24,700 strike while Put writing is seen at 24,400 then 24,300 strike. “Option data suggests a broader trading range between 24,000 to 25,000 zones and an immediate range between 24,300 to 24,700 le...