Market has taught everyone, we should never underestimate the 'Uncertainty': Angel Broking
Weekly Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):
"Whatever we have witnessed over the past few days, it's clearly once in a lifetime phenomenon. Market has taught everyone, we should never underestimate the 'Uncertainty'. Every day, market is bleeding as if there is no tomorrow; because people are clue less and don't know how and when we are going to come out of this. After Friday's recovery, many must have thought the short term bottom is made but this hope did not last too long. Within three subsequent sessions, Friday's low was not only tested but also broken quite convincingly. Our markets kept sinking throughout the day to conclude below 8500 with yet another severe cut of over 5%.
Since last few days we have not been emphasizing too much on the levels; because in such kind of situations, no levels are respected. Rather, we have been focusing more on INDIA VIX which is at elevated levels, at 12 years high. So rather than looking at any level in indices, one should wait for the Fear indicator to cool off. Till the time it doesn't happen, the onslaught is likely to continue. Also, one eye needs to be on the global peers as well. At present, we continue to advice momentum traders to avoid going against the direction and should strictly avoid leveraged trades. However, for investors with a broader perspective, we still believe that although it's an unprecedented panic situation, one should look to accumulate quality propositions in a staggered manner.
Many would argue looking at the brutal fall in hindsight, going short was extremely easy in such market. But the bitter truth is it's not the way it appears. One should avoid aggressive bets in any directions and should follow strict stop losses when it comes to trading."