Corona journey of Nifty
Exactly before a year, it was a time of Nov end or December
beginning in 2019. Most of us were very enthusiastic about the lifetime high of
Nifty @ around 12111. The boom in the economy was in the air. All were excited
about investments they did in 2015 or 2017 or even before. It was giving great
returns. But life is very strange. It gives surprises at a time when no one
expects.
Till the beginning of Mar 2020, Corona news was spread in every
corner of the world. The market slowly was making new low every day. Many of us
smelled some major downfall. Some had liquidity at that time, so they might have
invested more in February 2020 or the beginning of March 2020. Nifty fell by
2000 points by then and it was trading at around 10000. No one knew what was
the lowest of Nifty due to Corona's fear. But still, some folks were happy that they
could invest at a good low. Sometimes “I-don’t-know-you-don’t-know” is better. Because the new low was coming soon then.
Then comes the D day of 23rd March 2020 and the lower
circuit of Nifty happened. Trading halted in the exchange. Soon it touched the
season’s low of 7511. Everyone was in terrific shock. NEWS channels talked
about blood-bath everywhere. Major world indices observed bottoms. Last 4-5
years of returns of stocks washed away. No one has imagined any uptrend of
Nifty in near future. It was a major setback for investors. Some even bid the
stock market adieu for a lifetime.
Now in just eight months, Nifty touched its new high- lifetime high. Today’s high was 13055. Again, most of the stocks are performing far better with flying colors. Old investment started giving better results.
Look at the graph, how correctly it shows correct- ✔ sign! It's all corrected.
Once again, it proves fear and greed of the mass human
beings drive the market. During the time when Corona just started in India,
fear captured in people’s minds. Fear is instant, pervasive, and intense. They just started selling. However, the
reality was not that worst when Nifty touches lows. Then when it touched the
lowest point, it has nothing to do but go up. People had developed hope for the
betterment after seeing downfall. Now greed had started capturing people’s
minds thinking this is very cheap and it has to come up. Greed is slower. This time
in just eight months, it resulted in the lifetime high for the Nifty and many
stocks.
It is imperative to remember now what Warren Buffett once
said that it is wise for investors to be fearful when others are greedy, and
greedy when others are fearful!
Check your fear greed meter now. Is it a time to invest more
or hold or book profit?
