Have share markets hit bottom? Market guru Anil Singhvi reveals what investors should do now

It goes without saying that deadly coronavirus-caused Covid 19 pandemic has hit the Indian stock markets badly. Markets here have been seeing sharp rises and falls over the last one month or so. Rampant selling had been happening. Zee Business' position during these uncertain times has been pretty clear - "Don't buy... don't get trapped"! Many investors have benefited from this piece of advice given by Zee Business Managing Editor Anil Singhvi, and this has led market stalwarts  to laud his role in saving investors' money. Zee Business will remain connected to them to provide all the answers to their questions - the only objective is to save their money.

But, the big question for investors still remains the same - have the markets hit their bottom? Or not yet? When will that level come when the markets will start to rise?

Today, Zee Business did a special show on Bottom Formation of Market. This show was a formula-based research show in which market guru Anil Singhvi explained what are the indications of Market Bottom Formation and what are the risks involved if markets have not hit bottom yet. The show contents include a comparison with 2000, 2008 slowdowns and recovery data with 2020. Also, the episode has market guru Anil Singhvi's advice - Editor's Take - in which he talks about the important range and also advising investors about what to do in the current market scenario.

All questions answered here by market guru Anil Singhvi:-

Q1: Does recovery in the past few days mean that the market has reached its bottom?

A: There are signs that bottom has arrived. In the past 9 days, index closed 5-10% higher than the lowest closing. No negative closing was registered in these 9 days.

Q2: If the bottom has still not arrived, what are the reasons behind it?

A: As per the data of 2000 and 2008, in 7% cases, the formula used in the two slowdown periods was not successful.

30% recovery idea, once bottom arrives:-

Year        Trading sessions
2000      51
2008      105
2020        25

Q3: What's the fundamental view on markets? How do you see this recovery?

A: Here is year vs PE data -

Year     PE
2000  12.3
2008    10.68
2020  17.15

This year recovery is V-shaped. W and U shaped recovery yet to be seen.

Q4: What should be the strategy for the markets as of now? What should investors do?

A:  9800-10150 is book profit zone, 8800-9000 is the next important support range, and at 8000-8300 again decline is expected.

Also, stay alert in terms of midcap and small cap shares. Avoid cash market shares.