Market Guru Anil Singhvi reveals what investors should do NOW!
As part of the continuous roll out of power packed programming, Zee Business yesterday rolled out a special show on the Bottom Formation of Market. It is with such innovative programming that the channel has emerged as No. 1 in the Business News genre during COVID-19.
It goes without saying that deadly coronavirus-caused COVID- 19 pandemic have hit the Indian stock markets badly. Markets here have been seeing sharp rises and falls over the last one month or so. Rampant selling had been happening. Zee Business’ position during these uncertain times has been pretty clear – “Don’t buy… don’t get trapped”! Recent game changer campaigns that have got strong traction from investors include include Nahi Lena Hai, Nahi Fasna Hai; Band Karo Bazaar; FY extension; Bazaar Ka Bottom any others. Investors have benefited from the mentoring and guidance given by Zee Business Managing Editor Anil Singhvi, and this has led market stalwarts to laud his role in saving investors’ money. Zee Business will remain connected to them to provide all the answers to their questions – the only objective is to save their money.
But, the big question for investors still remains the same – have the markets hit their bottom? Or not yet? When will that level come when the markets will start to rise?
On Monday, 4th May Zee Business did a special show on Bottom Formation of Market. This show was a formula-based research show in which market guru Anil Singhvi explained what are the indications of Market Bottom Formation and what are the risks involved if markets have not hit bottom yet. The show contents include a comparison with 2000, 2008 slowdowns and recovery data with 2020. Also, the episode had Editor’s Take in which Singhvi talks about the important range and also advising investors about what to do in the current market scenario.
All questions answered here by Market Guru, Anil Singhvi:-
Q1: Does recovery in the past few days mean that the market has reached its bottom?
A: There are signs that bottom has arrived. In the past 9 days, index closed 5-10% higher than the lowest closing. No negative closing was registered in these 9 days.
Q2: If the bottom has still not arrived, what are the reasons behind it?
A: As per the data of 2000 and 2008, in 7% cases, the formula used in the two slowdown periods was not successful. 30% recovery idea, once bottom arrives:-
Year / Trading sessions
2000 / 51
2008 / 105
2020 / 25
Q3: What’s the fundamental view on markets? How do you see this recovery?
A: Here is year vs PE data –
Year / PE
2000 / 12.3
2008 / 10.68
2020 / 17.15
This year recovery is V-shaped. W and U shaped recovery yet to be seen.
Q4: What should be the strategy for the markets as of now? What should investors do?
A: 9800-10150 is book profit zone, 8800-9000 is the next important support range, and at 8000-8300 again decline is expected.
Also, stay alert in terms of midcap and small cap shares. Avoid cash market shares.
Source: Zee Business
Date: 5th May 2020