InvestorQ : Do you have any ideas to either book profit or to take fresh positions in the market for 09 December 2020?
Arti Chavan made post

Do you have any ideas to either book profit or to take fresh positions in the market for 09 December 2020?

diksha shah answered.
3 years ago

You would recollect that on Tuesday we suggested exiting Canara Bank and Bharti Infratel. Remember, trading is all about profits you make not about profits you could have made. For Wednesday, we are not booking profits but will wait for more clarity on the Nifty breaching above 13,400 levels. For all existing positions, existing status quo stays.

Even as we continue to be buyers in specific stocks and on each dip, let me caution you that the big risk in this market is complacence setting into the minds of investors. It is always advisable to attach put options on the Nifty to hedge if you are heavily long in the current markets. Such complacent markets have the habit of turning without any warning.

Let me now turn to whether there are any stocks to be purchased. I think there are still opportunities at a stock specific level. So, I have a buy call on two more stocks for Wednesday 09 December. The focus will be more on large caps as the risk reward does look favorable after the recent frenetic rally in the mid caps. Here are my stock picks for 09-Dec.

· You can look to once again buy Reliance Industries at Rs.1990 for targets of Rs.2200 in the next 1-2 months. RIL announced it would launch indigenous 5G services from second half of 2021. This could be the big story for RIL after the zero-debt story.

· As infrastructure picks up, the cement stocks are getting re-rated and you can ride the trend by buying Ambuja Cements at Rs.256 for short term targets of Rs.290 on the stock over next 1-2 months. Cement demand is riding high and price hike could be a trigger.

The good news is that the Bharat Bandh went through without untoward incidents and so markets will heave a sigh of relief. However, for the rural story to continue, the government needs to find an early solution to the farm riddle. The sooner the better.