If you look at nifty, it is trading in a tight range of 5350-5550 for a while now which is a mere 4% range. However if you look at some specific stocks then you will see that they have made a big move, up or down. For example, look at Reliance Industries stock, it has went down from 1050 to 920 per share but the markets are still stuck in the same range. On the other hand, Apollo Tyres stock has moved from 63 to 82 per share now.

Such a range bound market is telling you that if you wish to make money, then be very stock specific. Individual stocks are going up and down but the market is not moving. I’ll advice you on how to trade or invest in such a choppy market.

Trading – If you wish to trade in this choppy rangedbound market, then you will have to maintain a strict stop loss and a target very close to your buying price. You cannot hope for very huge returns as you dont know where each stock is heading, as you see markets are not moving anywhere. You can follow the stock trading tips given by analysts on Zee Business and CNBC TV18.

Investment – If you are looking to invest into the market with a long term view, then search for stocks that have good fundamentals and are available at a fair or undervalued prices. There are several good stocks right now that are undervalued and are giving a really good opportunity to go long. A few such stocks are – Reliance Industries, Punj Lloyd, JP Associates, Tata Steel etc. All these stocks are really good and are available at a very low price currently. Buy them at the current levels and sleep peacefully.

If it was upto me, I will prefer going long on the undervalued stocks and sell when they come back to their highs in future. That way I can get the best appreciation from each such stocks. The strategy of purchasing undervalued stocks that are strong fundamentally looks crap from a short term view but on a long term they prove really beneficial. Think about it.

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1. Advice On Reliance Industries Stock
2. 3 Stocks You Must Buy
3. Major Correction Due In Indian Market
4. You Need Patience To Make Profit In Stock Market