As market hit by volatility, Anil Singhvi decodes trend, explains what investors can expect
Indian stock markets have seen extreme volatility in recent days and this has investors worried about what to expect.
Indian stock markets have seen extreme volatility in recent days and this has investors worried about what to expect. Speaking on the same and the reason for the recent drop, Zee Business Managing Editor Anil Singhvi has said that even though volatility is there, NSE Nifty has maintained its range of 9,800 to 10,200. He said that extreme volatility in the market is an indication that the market is either in mood for a top-out or for further rally after some consolidation.
Decoding the meaning of extreme volatility in the stock market, Anil Singhvi said, "After 1000 to 1200 points rally at NSE Nifty, some profit-booking was expected and hence, the recent crash in the markets should be seen as market consolidation." Singhvi went on to add that even after extreme volatility, market has maintained a broader range of 9,800 to 10,200. In coming few trade sessions, if the market sustains above the 10,200 levels then we can expect further sharp rally in the markets, he added.
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However, if the market fails to break its upper resistance of 10,200, then it means that it had taken a pause to make its top-out at around 10,175 levels. Singhvi said that in the case of market topping out, we can witness some downside movement below 9,800 levels.
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बाजार 2-3 दिन सीमित दायरे में रहा तो आएगी बड़ी तेजी....अनिल सिंघवी ने कहा- कल की गिरावट से डरें नहीं, बहुत ज्यादा तेजी की वजह से दिखी मुनाफावसूली#EditorsTake #Sensex #Nifty #BankNifty #MarketUpdate #NSE #BSE @AnilSinghvi_ pic.twitter.com/HPCuRkgSXR
— Zee Business (@ZeeBusiness) June 5, 2020
On what market investors should do in such a scenario, Singhvi said, "There are two types of investors available in the market currently — those who took position when the market bottomed out and those who failed to judge when the market was making its bottom. So, those who miss the bus at market's bottom are doing aggressive buying while those who took position when the market made its bottom are booking profit. So, those who believe that there can be some more upside move coming in the markets need to keep the upper and lower range of the NSE Nifty in which it is currently trading. Nifty going below 9,800 means trend reversal and Nifty going above 10,200 means market moving towards its next top."
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