Daily Market Wrap Up - 23rd March 2020 - Angel Broking
Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):
"This is clearly one of the worst phases the whole world is undergoing at present. Not only in terms of financials or economies but also in terms of health crisis. This uncertainty due to coronavirus pandemic is weighing down heavily on markets across the globe and it was yet another day of carnage for Indian markets. We opened significantly lower and after initial trades locked into a lower circuit for the second time in last 7 sessions. Unlike the previous circuit day, today we didn't even see a mild recovery; in fact the selling augmented to conclude yet another terrible day with a cut of 13%.
On Friday, we had a stellar bounce back and looked like markets are going to extend the bounce back. But as we all know, since last few days more than anything, market is reacting only on developments with respect to the pandemic. Over the weekend, things worsened globally as well as on domestic front. Hence, today's massive fall was a reaction to this development. We reiterate in such type of environment, no analysis works and rather than focusing on conventional theories of stock market, it's better to keep a close eye on how things pan out with respect to the pandemic. As far as levels are concerned, 8000 now becomes a crucial hurdle. Since we are trading at multi year lows and no support is being respected, we refrain from mentioning levels as the number is decided on the next course of action.
Since last few days we have been mentioning how India VIX has zoomed to elevated levels and till the time it does not cool off, the mayhem is likely to continue. We hope that this health crisis subside soon for the betterment of mankind and economies. Until then we must give priority to our health rather than wealth."