Stock Markets volatility: Today's closing crucial, consider correction as a good sign, says Anil Singhvi

Zee Business Managing Editor and Market Guru Anil Singhvi talks about today’s Nifty and Bank Nifty closing. He said that this is the first sizeable correction in the Nifty's non-stop journey of 1400 points.  

The Nifty is recovering and came at 15,636. There is a slight recovery. However, the important Intraday level that the Market Guru shared for the Nifty and the Bank Nifty were 15,575 and 34,400, respectively. Both are trending below this level now. So how can we understand the action as we are witnessing the recovery in the selling and the recovering in the falling also? The moves are coming from both sides.

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Singhvi said there are two things that you have to observe. See the levels from both sides. For Intraday, the stop loss is 15,575, then the Nifty slipped around 200 points and then started recovering. Again for intraday, the stop loss is 34,400, then the Bank Nifty tumbled by 500 points and then started recovering. So we have to see 15,575 can hold on the closing basis or not? If 15,575 is holding on the closing basis then we are not on the wrong side.

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अनिल सिंघवी- आज की क्लोजिंग रहेगी अहम, करेक्शन को अच्छे संकेत के तौर पर देखें#MarketUpdate #Nifty #BankNifty @AnilSinghvi_ pic.twitter.com/QEomeXadt9

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He further added that but again are you able to hold 15,575 on the closing basis? If you will see then you will realise that you are above 50-60 points. But seeing today's volatility, we will wait for some time. The data is getting interesting with nearing 15,600-15,700 level. In the past 90 mins, it has come above the 15,600 level, this is an interesting move. The Bank Nifty is also showing quite interesting data. Seeing the data, after sometimes we will decide if some possibilities are building for the markets? 

The Market Guru said that one good thing happened today. Some of the positions are getting lighter. Not only in the future market but also in the cash market. The way the mid and small cap index broke by 2-3 per cent. This happened for the first time from 14,500 to 15,900 levels. He also added that “This is the first sizeable correction in the Nifty's non-stop journey of 1400 points. After this correction how the data will curve out, it will be crucial for Monday. This is a healthy correction!” 

If on the closing basis, you are holding both those levels then you don't have to worry much. You are safe! Let’s see the closing first!