The markets have been bearish for a while now and FIIs haven’t stopped selling yet! It feels like time travellers in 2025 are still watching FIIs sell 😅
Here are a few methods to safeguard your capital in the current market situation:
- Trade half quantity/Reduce your position sizing, this reduces the probability of your account getting hit hard on bad days.
- Follow proper risk management, if you enter a trade with a stop loss in your mind don’t change it! Take your stop loss and move on.
- Avoid over trading and revenge trades to cover losses you might end up losing more.
- Finalize specific intraday drawdowns i.e., if you plan your intraday stoploss as 1% of your capital deployed don’t change it or bend the rules.
- Stay consistent and follow no more than 2 intraday setups, this will help you master a strategy and better understand demand and supply zones.
For longterm investors, we would recommend you to start accumulating bluechip stocks that have corrected more than 35%
Stocks with 35% + corrections give you a margin of safety in terms of their life high. Also, make sure you do not but all at once gradually add to your portfolio in instalments! You might feel that the market can’t go lower and end up in a painful position.
What sectors are we bullish on?
We are extremely bullish on the FMCG sector and believe great wealth creation is yet to happen there! Our top picks would be Hindustan Unilever, Nestle India and Tata Consumer Products.
What sectors are we avoiding?
With the changes in export tax and all the drama so far we would recommend you not to create new long-term positions in the Metal sector. Let the metal sector cool off first and then pick the companies with the finest financials. As of now, we prefer to ignore this sector completely.
See it for yourself, here are the top stocks that have been impacted due to the metal sector breakdown: Tata Steel, JSW Steel, National Aluminum and the list goes on and on. So for now just let them be and if you already have open positions in this sector it would be ideal to find better opportunities and take a hit here.
Current market summary – Conclusion
It’s a great time for investors to start picking longterm stocks for the next 3, 5, 10, 15, and, 20 years! Just make sure the companies have good financials, the sector is expected to grow more and the company has lower debt compared to its peers!
Do have a look at our previous blog: 3 AMAZING BLUECHIP STOCKS FOR LONGTERM
Disclaimer: The views and investment tips expressed by experts on Stockica.com are their own, and not that of the website or its management.
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