Stock market tips: Markets are quite clear in their view about the current coronavirus situation and are seeing it in the context of next 3-4 years and not on a near term basis, Zee Business Managing Editor Anil Singhvi opines. The Managing Editor said that Nifty is already close to 11000 mark while US markets – Dow Jones and Nasdaq are also showing strength. While the former is moving towards the previous life-time high, the latter is consistently making new highs.
The Market Guru explained that the new reality that has dawned is that markets now know that coronavirus vaccine will be discovered sooner or later and the current rise in the number of cases along with casualties will end. The situation may last for another 3-6 months but we may not even remember about coronavirus 3-6 years down the line, Singhvi said.
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कोरोना के बढ़ते मामलों पर बाजार देगा रिएक्शन लेकिन नहीं आएगा बड़ा करेक्शन…बस स्टॉपलॉस का रखें खास ख्याल, अनिल सिंघवी का मौजूदा बाजार में कमाई का मंत्र…#EditorsTake #COVID19 #NSE #BSE #Sensex #Nifty #StockMarket @AnilSinghvi_ pic.twitter.com/DQ39NvFTtz
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Singhvi added, “It appears that the markets have started to look ahead on a long term basis.”
The Market Guru however said that the situation on the ground is not good, whether it is India or the US. In fact, the situation in the US is precarious as cases are growing very rapidly.
On Thursday, a record 2.2 lakh new cases were reported with over 5400 people succumbing to it. News of lockdown are also emerging now from various quarters.
It is still not known how much the markets will react from the emerging situation, but there is no doubt that the reaction will come.
The investors must realise that at higher levels around 11000 or 10800, the risk is more as there isn’t enough cushion. One way to deal with this is to refer to the data and mood.
For investors, Singhvi said, it is extremely important to know their stop-loss in the rising markets and make their strategy accordingly.
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While the equity markets are currently doing well, it is still not known when they would start moving towards mirroring reality. Singhvi indicated that there is no doubt businesses are suffering.