As updated on my twitter handle, I have been sitting in cash since 28/2 and this I believe was the best position I could take. The market volatility has been at its best, the VIX chart below shows how holding onto the stocks could have been the roller coaster ride in last 3-4 months :

Spike post 24th Feb -  India Vix

Nifty now is consolidating around 10K still figuring out the direction for the next move. On the positive side global markets are in recovery mode, crude oil prices are sliding and we have enough room for the next repo rate cut of 25bps. On the contrary side, there is no relief from the increasing COVID-19 cases in India.

What levels we should be looking for ?

Personally I am waiting for the indices to cross 200 DMA and VIX to settle around 20, to gain comfort and take positions. Few stocks are making good patterns but the volatility which we have currently is going to eat away our 5-7 percent stop losses resulting into an unfavorable risk reward ratio.

I would therefore prefer to stay in wait and watch mode until there are strong sign of reversal. Save yourself from the stress of investing in these kind of markets. 

Stay tuned for more updates!

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