Global Markets Strong Recovery: GOOD SIGN for NIFTY! A correction of 1 to 3 per cent normal, THESE levels crucial, says Anil Singhvi
All three major US indices, icluding Dow Jones, Nasdaq and Russel 2000, were performing exceptionally well; Nifty, Sensex soar too
After two back-to-back lackluster trading sessions on Friday and Monday, the global markets have seen strong rebound. In the two sessions Dow Jones Industrial Average slumped by 1000 points and now it regained over 850 points in the last two days. All three major US indices are only 1 per cent shy of their record highs now.
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Talking about this revival, Zee Business Managing Editor Anil Singhvi said it was bound to bounce back. "We usually see 1 to 3 per cent correction in a good market. This is what happened in the US too, the markets bounced back after exactly 3 per cent correction. I am not surprised at all. I am only baffled by sharp correction and sharp recovery. We are not used to such movement on either side of the markets. We are used to trade in small range in a very defined/sluggish pace. The range between which correction and recovery usually take place has come down to 1 to 2 days instead some 4 days. Traders are not ready for this kind of action as of yet, otherwise nothing has cahnged," said the Market Guru.
ग्लोबल बाजारों में शानदार रिबाउंड...
अनिल सिंघवी- लाइफ-हाई पर 1-3% की गिरावट रनिंग करेक्शन...
— Zee Business (@ZeeBusiness) July 22, 2021
He said in the Indian Market, we get support around 15,500 to 15,600 and profit booking is ssen around 15,800 to 15,900 and the similar range is there in America too. "This range has not changed either for India nor for America. 1 to 3 per cent correction in a good market around life-time highs is very normal. Good thing is that this rally has not been limited to Dow alone, but Nasdaq witnessed similar movement. Besides, Russell 2000, an American small cap Index, have also seen 5 per cent recovery in the broader market. This is also the best global cue that should take Nifty around its life-time high. Bond yield at lower level is a also a good signal," said Anil Singhvi.
Singhvi said behind all these developments, there are two important factors—faith in economic recovery and strong results posted by companies. "This allows traders and investors to go aggressive. One should know that 1 to 3 er cent correction or recovery is a new norm and they shouldn't be baffled. What they can do is to cut down once trading position and employ risk management while executing trade. A trader should be concerned about volatility not the market trend, " concluded Singhvi.
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