Play safe, say market experts

With stock market closed for the day after a huge jump, experts feel that investors should do a proper scrutiny before investing anywhere.

With stock market closed for the day after a huge jump, experts feel that investors should do a proper scrutiny before investing anywhere.

This man was perhaps looking at the rise of stock prices at Dalal Street on Monday morning. In response to UPA's victory in the Lok Sabha polls the Stock Exchange opened to a 10 per cent rise. Pic/Shadab Khan

As soon as Indian equity market opened, the Stocks jumped to such an extent on Monday morning that trading was halted for an hour. The halt was extneded to two hours. And after it opened at 11.55 pm and hit the upper circuit again, stock exchange was closed for the day.

The jump, triggered by UPA victory in the Lok Sabha elections, had breached the 'circuit breaker' kept to ensure the market doesn't move up or down too quickly.

"Investors should stop trading this week or those who all are planning to trade should make sure that they do a proper scrutiny before they buy," said Jigar Shah, vice president and head of Kimeng Securities. He fears that the situation may continue for the next few days.

While few others like Deven Choksi, chairman of K R Choski feels the current situation will not continue for a long time and people should trade the way they normally do.

"Do not follow the euphoria, it is very much safe and one should invest and gain some profit. But one should make sure that they study the market carefully before making any deal," said Choksi, who feels that the situation may lighten within few days.

Anand Tandon, Director Equities, Brics Securities, told CNBC-TV 18 that the market could reach 15,000 in the course of this week.

"If it does happen then I would take some money off the table because no matter what the fact to the matter is that at some stage there are other factors other than just liquidity and euphoria which come in play," he added.