Market outlook: Anil Singhvi warns investors of more rude shocks over next 1-2 weeks

The dangers from coronavirus outbreak are far from over. Both Sensex and Nifty have been on a roller coaster ride for many weeks now. After huge falls, markets have bounced back to an extent. But is it the best time to invest - be bullish about the market? What should be the strategy to deal with the volatility in the markets? Zee Business Managing Editor Anil Singhvi has some valuable suggestions for investors.

According to Anil Singhvi market turbulence is still not over and there could be further shocks in store for investors over the next one to two weeks.

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कायम है कोरोना का संकट... अनिल सिंघवी की राय- बाजार में अगले 1-2 हफ्ते लग सकते हैं बड़े झटके, निवेश की जल्दबाजी न करें#EditorsTake #CoronaVirus #GlobalMarket #Sensex #Nifty @AnilSinghvi_ pic.twitter.com/dk4VDavkTg

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Be prepared for shocks in the next 1-2 weeks

The markets have corrected by over 35%. But it will only be speculation as to how much the markets will correct going forward. Have the dangers subsided? The answer to this is a big 'NO'. Anil Singhvi says that an investor should keep a close watch on how the coronavirus situation develops in the US. According to him, the situation may further aggravate before it is brought under control. The problems in US markets are not over but it is difficult to predict how much the market will fall - 5% or 10%.

What can investors expect?

According to Anil Singhvi, the volatility has been high in the US markets which has caused problems in the Indian markets too. The situation is likely to continue, he said. The Vix or volatility index has been high in the domestic markets. Despite some recovery in the US markets,the Vix is still not at a comfortable level.

What should be the market strategy?
The next 3-4 trading sessions are crucial for Indian investors.The situation will become a bit clear by Monday and Tuesday as to where the markets are heading. If the number of Coronavirus cases rise,things could become difficult. Indian investors should be vigilant about various developments for the next 4-5 days especially. Not only US,but India's own situation on the COVID-19 front will be a determining factor.

How much should the investors spend?
Anil Singhvi suggests that investors should spend 70% at levels between 7200 and 7500 while the remaining 30% should be spent in case the markets continue to fall. This 30% would help the markets bounce back. If the markets do not fall below 7200-7500, it will be a big achievement. Don't invest in one go,instead invest is short bursts, he concluded.

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How much can the markets fall?

According to Anil Singhvi, there is still enough room for markets to fall in India and global markets.The markets have still not see their worst performance. Investors should not get trapped. there will be opportunities for buying at every level. An V shape recovery is highly unlikely. The investors should be prepare for a long drawn battle.