Since the start of this year, Conoravirus is in news and has claimed a little over 2,900 lives majorly in China. The virus is now spreading in other countries at a very fast pace. The countries which are impacted the most after China are Iran, Italy, and South Korea.
Till now over 60 countries have been impacted. In India, there were 3 cases of coronavirus but all have recovered well.
The fear has sent the global market into a bearish mode.
NIFTY 50 fell over 430 points on Friday. It is estimated that around 5 lakh crore worth of wealth was destroyed in one day. (source)
Can this be an opportunity to buy, yes maybe? But it would be a good idea to adopt a wait and watch strategy in the coming week. There is a possibility that we might see a short-covering pushing the indices a little higher.
Empirical evidence state that panic situations are generally a good time to buy (this is not my recommendation).
In other news, the Indian GDP numbers have come out bad. This is bad news all thanks to the economic slowdown.
NIFTY chart indicates the markets are in the oversold region. RSI is at about 24.
- Chart 1 – Google Finance.
- Chart 2 – Chartink.com