In case any solution comes to fight the Coronavirus then it would act as the final bottom for the markets, suggest Chouhan. Technically, Nifty would remain in the range of 10200 and 9300 for the time being.
“I was not expecting this massive fall on Friday in the morning,” Shrikant Chouhan, SVP Technical Research, Kotak Securities told Moneycontrol in a special podcast ‘D-Street Talk’.
“On Thursday when SGX Nifty was down by more than 1000 points everyone was in fear, and to be honest prior to hitting a lower circuit, Nifty was trading well below all-important support levels, and that is why we are extremely cautious when Nifty hit a lower circuit,” explains Chouhan.
He further added that due to consistent watch on SGX and Dow Futures because we could see the real emotions from traders across the world which really helped. “If you remember when the market hit a lower circuit and there was 45-minute window, Dow futures and SGX turned green,” added Chouhan.
This was an indication that the market could reverse the trend from here. It was clear that somebody has started covering their short positions in SGX which could well have a rub-off effect on Indian markets.
From the day’s lowest levels we saw a rally of 1600 points on Nifty. We need to give time to our markets and world markets before deciding on a bottom for the market.
However, in case any solution comes to fight the Coronavirus then it would act as the final bottom for the markets, suggest Chouhan. Technically, Nifty would remain in the range of 10,200 and 9300 for the time being.
(Tune in to the podcast for more)
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