NEW DELHI: Triggered by a sharp rise in bond yields, Nifty closed the volatile week with a cut of 3 percent. A 26 percent spike in fear gauge India VIX reflected the changing mood on Dalal Street. Led by a commodity boom, Nifty Metals was the only sectoral index that ended in the green with a weekly gain of almost 8 percent.

In this edition of Tweet Buster, we look beyond puns and memes related to the NSE glitch to help you understand market outlook, opportunities, and investment strategies so that you do not end up losing money in a volatile market.

A Wednesday!

Zerodha CEO Nithin Kamath said after the NSE tech glitch on Wednesday, it was a no-brainer for them to square off all NSE intraday positions on BSE. In this long thread, he said until 3.20 pm, they didn't know timings would be extended. "So sticking to normal square-off timing was the right thing to do," he said.

Zoom out:-

As the market mood turns bearish, Radhika Gupta, MD, and CEO, Edelweiss Asset Management, says: "Bad days happen and they feel like the end of the world. But 3-5 years later, you barely remember them and laugh at why they were a big deal. Market corrections are like that too. Today’s big event is usually small in the long term. Zoom out."

The commodity risk:-

Independent market expert Sandip Sabharwal warns that the extraordinary rally in commodities is putting at risk growth and earnings growth for the next financial year. "Crude Oil has now doubled since the end of October. Copper Up 40% at the same time, Steel up 40%, sharp rally across the board. Steriods always have side effects."

SBI overhyped

Sabharwal feels that the most overhyped stock in the stock market is none other than SBI. "Brokerages have crazily jumped in to upgrade the stock while nothing really has changed for them (except that it was cheap given rally in private sector banks) It will mostly disappoint on most parameters in the next financial year."

For the long haul

Kalpen Parekh, President at DSP Mutual Fund, reminds investors to remain focused on the long term and ignore all short-term fluctuations. "Long term equity returns ~ 12% is one side of the coin. Short-term fluctuations frequently like today are the other side of the coin. The coin will always have these two sides - be aware of both."

MF woes

i-thought co-founder Shyam Sekhar said large-cap mutual funds that avoided Reliance were hurt badly and now there

under the ownership of metals, commodities, and mining stocks will hurt them even worse.

Beware of the messiahs:-

Sekhar says in every cycle, newer messiahs emerge to justify excessive valuations at market peaks. "The herd always believed them. Only to be deceived later. That's my memory of every bull run."

How to average up:-

Microcap hunter Ian Cassel said when buying a new stock he focuses more on valuation but shifts his focus to execution on subsequent purchases. "If you are doing it right you'll be averaging up."