Russia-Ukraine war drag markets, Nifty may fall to 15,500; Accumulate quality stocks, avoid new positions

Nifty could touch the 15,500 level in the short term with a strong downtrend prevailing. Investors can remain cautious and follow a wait-and-see strategy for now. Any new posts should be avoided until sentiments and the situation stabilize,” said Ravi Singh-Vice President and Head of Research-ShareIndia.

India’s benchmarks saw a massive sell-off on Monday due to an escalation of war by Russia which is not only impacting gold and crude prices, but overall commodity prices firsts in the world. Sensex finished at 52,843, down 1,491 points or 2.74%. The Nifty 50 index touched an intraday low of 15,711 before settling at 15,863, down 382 points or 2.35%. Both indexes are currently down more than 15% from their all-time highs. The recent correction has wiped out nearly Rs 29 lakh crore of investors’ wealth since early February. Analysts and traders have urged investors to be cautious and use the decline to accumulate quality stocks but avoid any new positions.

What is holding the markets back today?

“Benchmarks are on a massive sell off due to an escalation of war by Russia which is not only impacting gold and crude prices, but overall commodity prices. first in the world. New sanctions against Russia have triggered huge jumps in gold and crude prices. In this scenario where economies were already struggling to maintain the pace of recovery, fears of stagflation have also started to take hold, with concerns over high commodity prices impacting inflation and slowing growth, all of which are impacting markets around the world and investment outflows. said Ravi Singh, Vice President and Head of Research-ShareIndia.

Ravi Singhal, Vice Chairman of GCL Securities Ltd, said: “Today’s drop was driven by news that the US may ban crude supplies from Russia. Ukraine is fighting back stronger than expected and Putin also said it could last longer. So it may take another 20 to 30 days to resolve the situation. Anuj Gaur, Director of IBBM (Money maker India Securities) added, “The markets are very volatile and taking very wild moves these days due to the war situations and upcoming election results. The VIX is very high indicating that the market is in a confusing mood and may react aggressively on either side.

What should investors do?

Enjoy a high VIX

“For traders, it’s a good opportunity to take advantage of the high VIX in the market, on the other hand, for long-term investors, all defense stocks, steel stocks, IT stocks and FMCG stocks will be a good long-term bet once the war resumes and becomes normal, these industries will react positively faster than other industries,” said Anuj Gaur, Director of IBBM (Money maker India Securities)

Avoid new investments

According to Ravi Singhal, Vice Chairman of GCL Securities Ltd, now is not the time to make new investments until this war situation is resolved, but long-term investors do not have to worry. worry about it. “As Warren Buffett once said, he will not sell stocks in the event of war, even if the conflict escalates into World War III,” he said.

Avoid taking new positions

“Nifty could touch the 15500 level in the near term with a strong downtrend prevailing. Investors can remain cautious and follow a wait-and-see strategy for now. Any new positions should be avoided until sentiment and conditions stabilize. said Ravi Singh-Vice President and Head of Research-ShareIndia.

Opportunity to deploy capital by modestly accumulating good quality stocks

“At current levels, markets offer excellent opportunities for investors to deploy their capital by modestly accumulating good quality stocks. The most battered sectors such as automotive, finance, etc. will bounce back just as quickly. A technical pullback remains imminent; if that happens, we’ll see pockets like autos, some financials, PES stocks, some IT and consumer pockets perform well over the medium term,” Milan Vaishnav, CMT, MSTA, Consulting Technical Analyst and Founder, Gemstone Equity Research & Advisory Services, said Financial Express Online.

(Recommendations in this article are from respective research analysts and brokerage firms. Financial Express Online assumes no responsibility for their investment advice. Investments in capital markets are subject to rules and regulations. Please see your investment adviser before investing.)

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