Due to geopolitical tension, the market was going down for the last few days. Sensex has broken more than 7000 points from its record high. What to do in a downturn in the market?
Stock Market Strategy: The stock market crashed today due to Russia’s military attack on Ukraine. Sensex fell by 2300 points in intraday trading today. While Nifty also slipped below 16350. Sensex has fallen more than 7000 points from record high. Nifty has also broken more than 2000 points. Investors have lost about Rs 13 lakh crore in today’s fall in the market. Apart from geopolitical risk, there are factors like inflation, fear of interest rate hike, rising bond yields and election results of 5 states at the domestic level, which can increase the volatility in the market. Experts say that the level of 16000 will be very important for Nifty. If the index goes below this, then in the worst case it can weaken to the level of 14000. However, long-term investors need to look for investment opportunities instead of panicking.
View the fall as a buying opportunity
Vijay Chandok, MD & CEO, ICICI Securities, says that due to the escalating war situation between Russia and Ukraine, there is a sell-off in the markets around the world. Due to this the prices of crude have also increased rapidly. The market will keep an eye on the crude prices going forward. By the way, a big sanction is not expected, due to which there will be a lot of increase in crude. A rise in crude will have an impact on the global economy, while rate hikes will slow economic growth. The market is expected to be stable in the short term. He says that this fall should be seen as a buying opportunity.
Will Nifty weaken till 14000 level?
Tradingo’s founder Parth Nyati says that technically Nifty has slipped below its 200-DMA, due to which it may see weakness towards the level of 16000. While there is an intermediate support at the level of 16400. Bounceback is expected in Nifty from the level of 16000, but the confidence of the market will come only when Nifty will be able to cross the level of 17200. If Nifty breaks down to the level of 16000, then in the worst case, Nifty can weaken to the level of 14000. However, we will remain in a long term bull market.
Talking about Bank Nifty, this index has also slipped below its 200-DMA, where the next important support is at the level of 35500. After that 34000 is the next support level for the index. On the upside, it needs to cross the 37500 level to gain any strength.
what should investors do
After the strong performance of the market in the year 2021, big and meaningful correction is being seen. Geopolitical tension is the biggest reason behind this. There is also pressure on the market due to inflation and fear of rising interest rates. Inflation is going to increase due to geo-political tension, because there is a steady rise in crude prices. Brent crude has crossed $100 per barrel today. Parth Nyati says that this is a good buying opportunity for long-term investors. Right now we are in a structural bull run and this is going to continue for a few years. Hence, long term investors should not panic and look for buying opportunities from lower levels. Keep an eye on Capital Goods, Infrastructure, Real Estate, Financial Sector.
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