Trading Tips in Indian Stock Market

Trading Tips in Indian Stock Market : The Indian stock market is continuously making news these days as it has been able to hold on to critical levels even though the global stock markets are crashing badly. What is the reason behind this? Many experts believe that improved corporate earning and strong gross domestic product (GDP) growth have contributed to this success and out performance. So, if you wish to trade this highly profitable market, here are the suggestions-

Trade the Bank and Financial Stocks
Indian banking sector is performing increasingly well and this has reflected from the quarterly and yearly results of banks. The stocks are making new highs because banks performed well even in pressure situations. The financial services sector has also recovered greatly after the economic recession and hence you can definitely bet on this sector.

Identify Quality Mid Cap stocks
The large cap stocks in Indian stock market are showing signs of exhaustion and have not run up since many months. So, why not shift your focus towards the mid-caps which are doing quite well? However, mid cap stocks can fall sharply and hence you should choose quality mid caps which have a sound business model and good performance history.

Look Out for Pharma Stocks
Indian pharmaceutical companies are doing very well with overseas acquisitions, introducing medicines and tablets in US markets and expanding the ever growing domestic business. Pharma companies are not affected by global meltdown or other factors such as interest rate hikes. So, choose the quality ones for great value creation.

Be Cautious About the Incoming News on Stocks
You need to cautiously trade the stocks which have some good or bad news coming in. Generally, Indian stock markets show nervousness on acquisitions made with huge amount of cash and large equity dilution. So, in such cases, stock prices can get hammered. On the other hand, stake sale in companies generally create a great interest in the Indian markets if the sale of shares comes at a premium to the current market price.

Trade the High Beta Stocks
If you wish to become a successful trader in the Indian equity market, you would need to trade the high beta stocks. Keep proper stop losses and wait for some ambitious price targets in these stocks. Do not panic if the price starts falling and invest in infrastructure stocks in the mid cap space for high returns.

Sit on Cash in a Falling Market
If the market falls consistently breaking all the supports in the downside, liquidate all your positions and sit on cash till they find support on the lower levels. Wait for the right opportunity to buy the right kind of stocks. Study the technical charts carefully before you buy anything.

Check the FII Moves
Indian stock markets depend largely on the money coming from foreign institutional investors (FII's). So, if you find that FII exposure has increased, then you might consider to do selective buying in some stocks. For the latest updates PRESS CTR + D or visit Stock Market news Today

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