Nifty at 20k: A part of a long journey and not a destination, says Vijay Kedia

The market veteran finds PSUs and railway stocks to have become expensive beyond imagination. He advised investors to stay away from such stocks if investing for the shorter term

The 20,000 mark that Nifty50 crossed is merely a part of its journey and not a destination, said Vijay Kedia of Kedia Securities in an interview with CNBC TV18 held on September 11. Nifty will reach 25,000, 30,000 and many more steps, along the way, he said.

On September 11, the Nifty 50 index reached a new all-time high of 20,008.15 points. At close, it ended almost a percent higher than the previous close at 19,996.35 points.

“Tezi main hain sabhi genius, sabhi samajhte khud ko hero, mandhi ki aandhi main, bante aur bighadte firse zero. Banane aur bighadne main hi, nayi zindagi shuru hui hai, fir bhi apne hosh na khona, chahe party shuru hui hai” stated Kedia as the Nifty crossed the 20,000 mark. This means that the long-term party for the new India has begun, however, investors need to always be cautious of the hiccups that may arise.

Kedia is bullish on the Indian markets and expects the rising journey to continue. However, the market expert is worried about the speed at which the index is proceeding.

Watch another Vijay Kedia interview with Moneycontrol here

In his iconic poetic manner, Kedia advised the new investors of the market to make judicious decisions rather than looking for small investments in penny stocks.

Amid the rising interest of investors towards mid-cap and small-caps, Kedia flags caution towards the fourth market cap, which he refers to as the ‘Bhangaar cap’. “I am worried for the new investors, getting tempted by the Bhangaar cap, which comprises of stocks that are never talked about or looked at,” he said.

The market veteran finds PSUs and railway stocks to have become expensive beyond imagination. He advised investors to stay away from such stocks if investing for the shorter term. “Rome was not built in a day, but Hiroshima and Nagasaki were destroyed in a day,” quoted Kedia to explain his point.

He stated that playing the market as a marathon in the long term is his bet, however, for those playing the market momentum, they need to be cautious.