Source : (www.livemint.com)
Experts recommend large-cap stocks amid volatile stock markets
In large-cap stocks, one will have the facility to do two-way trade and take benefit of both falling and rising trends, say experts.
In large-cap stocks, sentimental movement will be least compared to mid-cap and small-cap stocks, say experts
Amid highly volatile stock market and the number of fresh Covid-19 cases remaining above 3 lakhs for five consecutive days, stock market experts have recommended traders to switch towards large-cap stocks. They said that in large-cap stocks, sentimental movement will be least compared to mid-cap and small-cap stocks. They went on to add that in large-cap stocks, one will have the facility to do two-way trade and take benefit of both falling and rising trends.
Favouring large-cap stocks in such a volatile markets Avinash Gorakshkar, Head of Research at Profimart Securities said, Large-cap stocks give you a opportunity to trade both sides. Since the market is highly volatile and the way new cases of Covid have been rising for the last one week, the volatility in the market is expected to remain maintained this week too. So, traders are advised to maintain sell on rise strategy and shift focus towards large-cap stocks until the market volatile subsides.
Standing in sync with Avinash Gorakshkar's views; Ravi Singhal, Vice-Chairman, GCL Securities Limited said, If the trader has front line liquidity, large-cap stocks give opportunity to come out of the position at right time as its movement is limited. However, in the case of mid-cap and small-cap stocks, the movement is so fast, especially in the volatile market that we are witnessing these days that one finds it quit tough to come out of the position at the price it wants.
Both experts advised strict stop loss while taking any position in current markets and suggested large-cap banking stocks to look at. They said that large-cap corporate banking stocks like SBI, ICICI Bank and Axis Bank are poised for 3-5 per cent upside swing in this week.