With a contrarian investing style, we believe that there would be short term opportunities for equity investors. Bear market rallies could be as large as 30 per cent or more and this could be a good year for traders.
However, it is important to be nimble and any trader should have stop losses. It is expected that these rallies may not be sustained and hence profit booking will be very crucial.
This year technical analysis will be king. PSU Banks are likely to be in demand due to profits on account fall in interest rates. FMCG stocks are also likely to be in demand due to their defensive nature.
Also see: Auto insurance: Frequently asked questions
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