Avoid short-term bets now

Vix Spikes to 31+ levels as it reaches now to June 2020 Covid Crash levels while world market tumbles shedding 5-6 per cent gains amid War between Russia and Ukraine.

As pointed out, The overnight volatility has come to the shores of the Indian market with a gap down open and ending the day with one of the biggest losses of 4.9+ per cent in the last few years. Nifty and BankNifty shredding 4.8 – 6 per cent while the broader market also took a hit with the worst being PSUBanks losing 8+per cent.

The volatility may continue to remain elevated with some minor cool-offs but this will be the course of action for the next two to three weeks as it's just the beginning. It will be the geopolitical developments that will further guide as fear is the main driver here.

This correction also presents the opportunity for long-term investors who are looking to add or take exposure in the market or probably missed the opportunity in 2020. Crucial support for Nifty is at 15400 and 12,450. One should accumulate only if the horizon is long-term and avoid short-term bets.

(The author is technical analyst at Finversify)