Risk prone investors can take positions; others should wait for the dust to settle down: C K Narayan

C K Narayan, Growth Avenues Asset Advisors, in an interview with ET Now talks about the market outlook.

What is the call on markets?

In a market like this, what one has to do is just stick to the sidelines unless you are a real adventurous cowboy who wants to try his hand in trying to pick bottoms. Now when you try to pick bottoms, you actually are digging to graves.

One is for the market in which you hope you will sink it into. The other is for yourself. If you are of that sort, then you can try and pick the bottom but otherwise the more prudent thing to do is wait for all this heavy action to get over.

Most of it is being driven by overseas feeds particularly coming off the kind of panic we are seeing in the commodity markets right now. So I do not think any kind of correlation, any kind of reasoning that we usually apply to these markets will really work right now. It is best to stay away, wait for the dust to settle down.

You will buy a little higher on big deals, at least you are not going to risk losing big time money or be unsure about your trade. It is nice for very large players to say this is a level to buy but for a smaller trader he has to worry about every thousand bucks that he has on play.

So we have to be very careful here. No doubt that big sell offs like this do actually present opportunities but you need to address your risk here. Those who are very risk prone can of course take a position but others should wait on the sidelines.