Investors must have some cash to deploy in event of a deeper correction: Mehul Kothari

Domestic equity market benchmarks BSE Sensex and Nifty 50 were trading higher led by gains in metals and IT stocks amid positive global cues. Broader markets supported the up-move as the smallcap and midcap indices are trading higher. The  BSE Sensex was hovering near 55,700, while the Nifty 50 index crossed 16,550 in early trade. Mehul Kothari of Anand Rathi spoke to Money9 on the best way to approach the current markets.

“The nature of markets has changed, while there was an expectation of correction in markets, even if that is happening, it is taking place in individual stocks and not in the overall markets. This kind of market is very difficult to trade”, he said.

However, even if someone needs to take a pick, Nifty will be a better index to trade with rather than Nifty Bank although he does believe that another 4-5% correction in markets can come but one must not worry as much but have some cash ready to deploy in case of deeper correction.

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Infosys | Sell | Target: 1620 | Stop Loss: 1800

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