Nifty hit down circuit and trading was halted for 45 minutes. Aditya Narain, head of research, institutional equities at Edelweiss Securities said, “It could be a basket, it could be that these have been the standouts or the holdouts and when there is capitulation, at the end of the day you go for the biggest holdings that you have in your portfolio so it could possibly be a combination of some of these things that is leading to this kind of a market,” he said.

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“The challenge is that when one buys today, you seldom look at it from a two-year perspective and that is why there tends to be more concern but if you were to look at big market meltdowns, whether it was 2000 or 2008, if you have got in closer to the lower ends, you did fairly well but you could have argued that we are at the lower end, 10-15 percent higher, what you do require for comfort on a call like that is market stabilisation. At the moment, you are just moving into what is a whiplashing market and you can get caught out a little bit but the moment you get stabilisation, these are levels where from a medium-term perspective, you will end up making reasonable money,” he added.

“At this point, I would not raise cash levels. Till you see market stabilisation, till you see the dust settling a little bit, it probably makes more sense to sit it out and wait for the stocks you want to buy,” said Narain.

“A 5-7 percent kind of a rebound on the market you can get very quickly because this market is going down on very little volume, it could go back on a certain amount of volume too but fundamentally, you have reached a point where you will have the luxury of picking your stocks and picking your sectors,” he further mentioned.

“At this point in time it is very hard to figure out the market dynamics. To that extent, just jumping in for anything other than a trade tends to be risky,” he stated.

When asked if it is the time to sell, he replied, “It is a time to be inactive. It is a time to watch CNBC-TV18. If you think you are going to catch it 5 percent lower, you might end up going 5 percent lower because to put a bottom on this at this point in time is hard. So, to that extent, it is time to sit it out. The moment you get stability, you can have your pick and you get the luxury of picking a good price knowing that things are stable.”

First Published:Mar 13, 2020 11:01 AM IST