Today we will start the trading day with negative bias and chances of Nifty moving down to below 10000 level is not ruled out. Yesterday the US markets have fallen steeply and entered into Bear market. Technically bear market is considered when markets fall more than 20% from its highs. In last 15 days, markets that were hitting all time high are today entered in bear zone. You can see the level of panic selling in the Global equities.
Today SGX Nifty is indicating a weak start at around 10000 level. These levels are not seen in last two years and entering in bear market from here onward. It is better to keep your money in the form of cash and bottom fishing should be ignored in the markets. Every thing is getting hit hardly and prices are free falling. Giving an opportunity to invest but do not get tempted with it as it can deceive you and you can be hit with huge losses. It is better to wait and once some positives news start flowing that is the time to invest your hard earned money. Have a look on the Nifty chart as if breaks 10000 level than there is no support at all to make nifty moving higher. The next support is coming at 7900 level really scary picture now. It can move up only if Corona virus issue subside and gives some confidence to investors.
Yesterday World Health Organisation declares the corona virus outbreak a global pandemic. There are 118000 cases and more than 4000 deaths told agency as well as spread has found foothold on every continent except Antarctica. US has imposed travel ban to Europe for 30 days due to the virus. Inorder to curb the corona virus spread in India, Government has impose travel ban and non entry of Foreigners for a Month.
Today strategy is to short the market on every rise and things are really bad. Do not take contrarian calls as you will loose money.