It’s Better To Exit The Market At Each Bounce – Ashu Madan

The Nifty ended Tuesday at 4,356 after making a gaining 17 points and the Sensex closed the day at 14,937, up 30 points. Asian markets are trading in the green. Presently, the crude is trading down at 0.19 at 72.23 a barrel on the Nymex.

Ashu Madan of Religare alleged that no special skill is necessary to estimate the markets opening.

“Whenever the market has had a gap-down opening it has always been sustained. However, when it has a gap-up opening it does away with the gains. There are some sections in the market, which are wary of things. Something fishy is happening in the US and I expect to see some more skeletons rolling out,” he added.

Mr. Madan was doubtful if the markets were going away to observe novel highs in the coming months. For him, in the next couple of months, sell on rallies rather than purchase on drops should be the policy.

He also said that buying on dips is absolutely a fine strategy for a trader. He has been suggesting his customers to seize a contrarian position with every 100 points down or up on the Nifty, as there was a 90% possibility of earning money that way. He mentioned that the plan was not to foresee a continuing or medium-term vision excluding the very fundamentally sound stocks, that too from the midcaps, and not from the frontlines, as one never knows how frontlines come along out of complete fear.