'Healthy correction but...'- Market Guru Anil Singhvi SAYS THIS on global market situation; recovery of metals, commodities and steel

Zee Business Managing Editor and Market Guru Anil Singhvi has decoded the declining environment in the global markets. He said that this is a healthy correction, but recovery will also start in 1-2 weeks with metals, commodities and steel.  

Market movement: A week ago, it was looking that from 2024 the Federal Reserve Bank will hike the interest rate. However, with the Fed Policy, it was understood that it will happen from 2023. But now there is an indication that it will happen in 2022-end. How to understand all these indications with the global market action that happened last Friday?

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The Market Guru said that before indicating these speculations, we have to understand whom to consider first - Jerome Powell or his associates? He further added that 2 days ago, Powell commented that in 2023 the Bank will hike the rate, that to 2 times. Now, his junior associate commented that it will be increased in 2022-end. The Market slipped by 500 points after his associate’s remark. The markets needed an excuse to fall and that what happened!

ग्लोबल बाजारों में गिरावट का माहौल...@AnilSinghvi_- बाजार की कमजोरी को ब्याज दरों से हटकर देखें, मुनाफावसूली के चलते आई भारी गिरावट

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अगले 2 हफ्ते रहेंगे मुश्किल भरे, संभलकर करें ट्रेड pic.twitter.com/WBmUwOdbbJ

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Singhvi said that whatever things are happening in the global markets are actually unpredictable. So, we have made it clear that for June indications, we have to take cues from the global markets. “I feel, these are positive corrections happening in the global market. The Dow moved southward on Friday, and it was the make-or-the-break level. If the Dow had to inch up then Friday was the good day for it. And the dipping indications were from the Friday session. The last week, the US market declined continuously, and it was a bad week. This is definitely an indication that we have to get alert now,” he asserted.   

He said that the Bond Yield is at 140 now. If actually, the interest rate hike is happening in 2022-end then the Bond Yield should have increased, not decreases! The Bond Yield has slipped from 148 to 140. In fact, the Bond Yield should have been on 160 or 161! Take it in this way that the markets need a reason to fall! This is a clear indication that the rate will hike so the Bond Yield is dipping.  

Singhvi added that exclude the rate hike thing from the global market now. This is a correction as there was an unnecessary surge in the asset class earlier. Metals took the lead in the fall, then the American markets indicated weak momentum, and gradually the Bond Yield is following. So, the crux is whatever jumped high is now coming back and are coming to the realistic level! So, this is a healthy correction in the market after the continuous rally.  

“There is no other correlation here. This is hard to speculate now that when the market will recover. But I feel, the moment metals, commodities and steel will be stable, the recovering will start happening. It is likely that from the beginning of July, the position in the global and local markets will start easing,” he said. 

So, for the market, these 2 weeks are crucial, and you have to be cautious for the next 2 weeks. Expect less this week as this is an expiry week. Stay afloat not just according to the position level but according to the time!