Mumbai: The coronavirus has gripped markets across the globe and India is no exception. At such times, when the market is driven by fear, no analysis works, stated Sameet Chavan, Chief Analyst, Technical and Derivatives, Angel Broking.
Speaking to The Free Press Journal, Chavan said, “Whatever we are witnessing since the last three week, it is unprecedented. Market is clearly driven by fear, sentiments on the back of coronavirus pandemic and hence in such kind of market no analysis works.”
Until last Friday, markets assumed the worst was over and there was some recovery. However, today (March 23, 2020) the market was bearish again which led to markets closing for 45 minutes and before resuming the trade.
“The coronavirus pandemic fear aggravated over the weekend and hence global markets again started bleeding,”Chavan added.
At present the market is lowest since demonetisation.
Talking about the market sentiments, Chavan said, “We are continuously advising traders to avoid momentum trades, especially against the current direction. Also, leveraged trades are strictly avoided considering the massive volatility.”
He went on to highlight that India's Volatility Index trading was almost at record highs and till the time it does not cool off considerably, this mayhem is likely to continue.
“Although, nobody knows when and where this hammering is going to end, we believe that it is an opportunity for investors to accumulate only quality names in the portfolio in a staggered manner,” suggested Chavan.
With the pharma sector doing well, eyes are set on this arena for the time being. Chavan also added that there is no doubt that the development of the coronavirus cases is likely to dictate the near term movement. Over 3.30 lakh Coronavirus cases are reported across the world of which over 410 are from India.
