The benchmark Nifty has rallied 16 per cent in the past two months. The sharp rally could cap significant gains in the short term, believe experts. As a result, they are advising using intermittent corrections to build long positions on the Nifty. “For traders, our advice would be to use any correction towards 10,700-10,900 levels to accumulate long positions with a stop loss of 10,500. On the higher side, any sharp rally towards 11,500-117,00 levels should be utilised to book profit to buy back at lower levels,” said Nandish Shah, technical research analyst, HDFC Securities. The Nifty50 index closed at 11,073 on Friday.
MFs with limited debt offerings are looking to expand their product basket, as investors' appetite has shifted towards low-risk debt products. "Credit-risk funds have seen a steep fall down the pecking order. Mid-sized fund houses are filing for corporate bond funds and banking & PSU funds, where the portfolio is largely deployed in higher-graded debt papers," said a senior executive of a fund house. Some fund houses are considering launching debt products linked to government securities.