Market outlook: Volatile sessions likely, says Anil Singhvi, suggests investors preserve and protect capital rather look for profit

Zee Business Managing Editor and the Market Guru Anil Singhvi suggests investors to give more focus to capital preservation rather than look for profit as the rising cases of corona are going to dent the market sentiment some more. India has reported over 2.7 lakh cases in the last 24 hours.

He also points out, if we keep discovering around 2.5-3 lakh cases every day, and this continues for the next 8-10 days, the economy is going to be enormously impacted, the business will either see staggered or no operations and they may even cease. 

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Singhvi affirms, “The markets will continue to report uncertain or weak performance unless we don’t either slowdown or control over corona cases. In a situation like this, sectors such as banking, financial among others are the first to get hit and hence he suggests rebalancing of portfolio.

Besides, malls, clubs, theatres, restaurants and all those public places are doubtful to be opened soon and which would also impact the economy and hence, Singhvi recommends, investors should focus on the companies, which are getting benefitted most by the corona situation such as pharma.

Singhvi expects, the market would certainly show some correction, however, the investors should not be under any assumption of this like last year. He terms, last year, the fear was unknown and hence we saw substantial decline, however, this time the fear is known and hence there will be a fall but marginal.

Investors need to be prepared, as this would be the last opportunity for them with limited correction, Singhvi mentions. If by April-end or May, Singhvi says, the corona cases peak out, then in another couple of months market will see new highs and strengthen itself.

There is certainly volatility in the market and hence the market guru suggests a three-point strategy to the investors; first, rebalance your portfolios, second keep cash handy if you could, and third, traders should not have overnight positions without hedge be it growth or decline.

Lastly, while concluding the market guru asks investors to change their mindset and focus on protection of capital rather than looking for profit booking. Capital preservation should the goal for quite some time till the market gets back its confidence. 

(Authored by Vaibhav Bansode)