The S&P BSE Sensex and Nifty50 hit a fresh 52-week low on March 9 but experts feel that it may not be the time to buy stocks just yet.
In an exclusive interview with CNBC-Tv18, Atul Suri, Founder & CEO, Marathon Trends – PMS said that he would wait for the market to at least consolidate for three days.
“A lot of stocks are looking attractive but I will wait for some stability. I would wait for some more consolidation in which 3-day low does not get violated,” says Suri.
“The crisis is not about India. The big problem was the sharp fall seen in US Bond Yields due to coronavirus fears, and the overnight development in crude oil added more weight. Hence, the fall in Nifty is largely due to what is happening in the globe,” said Suri.
Suri feels that the world economy is witnessing a domino effect and Indian markets too have fallen victim to it. Global markets are oversold and he doesn’t think anyone has a full understanding of the impact of Coronavius & the crude war.
Technically, Nifty50 broke below a crucial support at 10,600 levels where we bounced back after income tax cut, and corporate tax cut. Below 10,600, the next big support is placed at 10,100, suggest Suri.
The issue is not with India, it is more global. Indian markets will bounce back once the global economy stabalises. Remember, at this point, the price of the stocks is not the value of the underlying, it is more case of liquidity or domino effect, explains Suri.
The fall on Monday is largely weighed down by a fall in crude oil prices. "Crude oil fall has an impact on other asset classes. The sell-off could be led by ETF which might not be India specific," said Suri. A lot of strategies exist globally which have inter asset classes linkages, he explains.
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