Stock Markets have surprised! Anil Singhvi maps the way forward for investors
Amid extreme volatility in the stock markets, technical analysts are finding it difficult to finalise the market gap and range even though they are being able to pick the market trend, says Zee Business Managing Editor Anil Singhvi.
Amid extreme volatility in the stock markets, technical analysts are finding it difficult to finalise the market gap and range even though they are being able to pick the market trend, says Zee Business Managing Editor Anil Singhvi. He added that after the 2-day surprise pulled off by the stock markets - robust recovery on Tuesday after heavy selloff on Monday and FIIs indulging in short-covering - it's for sure that market is in a mood to move forward on fresh buying. The Market Guru was of the opinion that Put-call ratio has also improved from 110 to 142 and it also indicates that market is ready to move forward on fresh buying instead of short-covering.
Singhvi explained, "When the put-call ratio came down at around 110 we were expecting some recovery of 50-60 Nifty points in the markets on Tuesday but the recovery we witnessed on Tuesday was beyond the charts of technical analysts. Similarly, when the market was crashing on Monday, technical analysts were of the opinion that it will knock at 11,000 mark or may be up to 10,950 and then bounce back. But, again they were proven wrong as the markets closed below 10,900 on Monday."
Singhvi said that last two days trade surprised traders of both sides. While technical analysts were able to pick the trend, they couldn't assess the level of dip or rise in the markets. But, this happened because short-covering was taking place lesser while buying was more in volume.
See Zee Business Live TV streaming below:
So, what does that mean for investors, going forward? The Market Guru said that in fact, short-covering was done by the FIIs and that means from now on, it's fresh buying that will lead the market direction.
Watch full coverage in video below:
बाजार के मूवमेंट ने दोनों तरफ किया सरप्राइज... अनिल सिंघवी ने कहा- पिछले 2 दिनों में बाजार में उम्मीद से ज्यादा रिएक्शन, बोले- अब शॉर्टकवरिंग नहीं फ्रेश खरीदारी के दम पर बढ़ेंगे आगे#EditorsTake #Nifty #Sensex #BankNifty #StockMarket @AnilSinghvi_ pic.twitter.com/xWByRrstXk
— Zee Business (@ZeeBusiness) August 5, 2020
"On Monday, put-call ratio came down to the tune of 110 but on Tuesday it escalated up to 142 that also hints at bulls taking over from the bears and hence it is advisable for traders to believe in fresh buying positions instead of short-coverings," concluded Singhvi.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.