Everybody asks the same question. Is the Corona Virus triggered market crash fully over ? Nobody knows the exact answer because in situations like this, the market reacts in a peculiar way. Already our markets corrected a lot and touched a recent low on 23rd March and recovered smartly from that level. But still it is way below its recent all time high. Also our markets fared badly compared to the US and other major world markets, may be due to other domestic issues like China border tension etc.
All over the world markets are holding on to the current reasonable levels due to the low interest rates prevailing in most of the major countries. In the US in addition to the bond buying program and low interest rates, 1 trillion dollar economic package to tackle covid-19 crisis also helped the markets to recover a lot from the recent lows.
That means the real economic condition is not reflected in the markets now including India. Maybe investors are hoping that the corona virus issue will be over soon and all major economies will return to normal very soon. Let us be optimistic and hope it will be over soon. But whatever damage it has done to the economies is still unknown. Sectors like tourism, air travel etc will take a long time to recover even if the crisis ends soon. Also still corona cases are increasing in our country and nobody knows when it will peak and start to reduce. Now it is spreading to small cities, towns and villages where the real consumption happens.
So we cannot say the corona related crisis is over for the markets. So it is better to trade and invest with caution at this juncture. Keep booking profits and losses regularly. It is better to avoid less performing stocks and book profits whenever available even if it is in a small percentage. This is not the time for greed. When markets fall it will happen in a few days and it takes weeks or even months to reach the high levels again. So always remember that. It is better to sit with some cash in these kinds of situations so that you can accumulate good quality stocks if markets crash again.
So it is better not to be over optimistic or over pessimistic in these kinds of situations. Go with the current flow in the market but be ready to face any sudden volatility too.