The scare of a global economic slowdown following the outbreak of Coronavirus saw world markets take a severe knock, and Indian equities were not spared.
In the coming week, stocks could continue to trade with extreme volatility in the week ahead, after this week’s biggest one-day loss since 1987 was followed by the best one-day gain since the financial crisis.
Now that stocks have entered a bear market, more wild volatility is expected in the week ahead as investors await decision by central bank around the globe to pump-prime the economy.
In the past week, the market was sharply lower but swung wildly in both directions, including the stunning 10% decline in the Sensed and Nifty on Friday-the worst one-day drop since the 1987 market crash – only to climb back in to positive zone.
Experts believe that the market is closer to finding a bottom, but that will depend on a slowdown in negative news on the virus.
The Nifty is expected to make efforts to gain some stability and attempt a technical rebound. The 9,900 and 10,040 levels will act as key resistance, while supports will come in at 9,500 and 9,300 levels.
The Federal Reserve meets in the coming week, and the market is looking for it to make a big move.
Meanwhile, US President Donald Trump declared a state of emergency Friday, which allows him to tap federal agencies to provide emergency funds and other responses to the crisis.
The president also announced the government would buy oil to fill the Strategic Petroleum Reserves and that 1.4 million test kits would be available in the next week.
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