Anil Singhvi reveals how to combat Coronavirus-hit stock market in March - #FasnaNahiHai
Markets have plunged and this may be a lure for many investors expecting a bounceback. Zee Business Managing Editor reveals what investors can do in the month of March - #FasnaNahiHai.
Coronavirus has hit both the global and Indian stock markets. In the last one month, the US Dow Jones has hit lower circuit on four occasions. Before that, the Dow Jones had hit the lower circuit in the year 1997. Following the weak global cues, Indian indices too have crashed to the tune of 25 per cent in the last one month. Indian indices also hit the lower circuit last Friday. Today, the NSE Nifty index had gone down below 8,000 levels while the BSE Sensex crashed over 2,000 points in the opening Bell trade session. In such a free-falling share market, investors need to have a proper strategy for the next 9 trade sessions to come in March 2020. Zee Business Managing Editor Anil Singhvi comes out with a strategy for March 2020 on how to combat the Coronavirus hit the stock market - #FasnaNahiHai.
Anil Singhvi on stock market recovery
According to Anil Singhvi, this stock market crash has not been caused by an economic crisis. It has been caused by a health crisis. When there is an economic crisis, the government chips in by enhancing liquidity, curtailing interest rates, etc. But, in the case of such a health crisis, when around 200 countries have got hit by Coronavirus pandemic, recruiters are forced to ask their workers to sit at home or 'follow work from home' routine rather coming out of one's home. In fact, there is a complete lockdown kind of situation and Anil Singhvi says that it will take time to come out of this crisis. He is advising investors that they should not show any kind of a hurry because all types of market sentiment indicators are negative. On the bailout package announced by the US and some other countries set to follow suit in this regard, Singhvi is quite clear that it won't be enough to combat the Coronavirus-hit stock market.
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Singhvi is of the opinion that the next 15 days are very crucial as India has entered into the third stage of Corovaris - there are 13 days left in the month of March. He said that one should ensure the safety of one's money in this Coronavirus hit stock market rather than making money. In fact, a penny saved is a penny earned in such a free-falling stock market. So, the next 9 trade sessions are crucial for stock market investors as from 1st April, there can be some recovery expected, said Singhvi.
Advising to adopt #FasnaNahiHai strategy, Singhvi said that in the next trading sessions to come in March 2020, the market would lure investors with hopes of a bounceback. However, Singhvi said 'Fasna Nahi Hai'! Why? The market is slowly and steadily reaching the oversold condition. He strictly advised investors to avoid taking any short-position in the markets. In fact, for those who have a buying position, Singhvi advised them to book profit on every rise of 5-7 per cent.
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