STILL TOO EARLY TO “BUY THE DIP”

FOR MONDAY LIVE MARKET TRADING TIPS WHATSAPP ON 7772909587 

Russia's attack on Ukraine has pushed both global and domestic stock markets deep into the red. We do not believe the recent stock market correction is the right time to buy the drop as we believe markets have not corrected that much, they are up 100% and down 12-13%. But in terms of volatility, when you see 10-12% corrections, they tend to correct a bit more. So we don't want to say that it's a good time to buy. With these geopolitical tensions, there is a lot of news coming out every hour. So we think people should wait and see what happens with inflation and see what happens with the geopolitics of everything. We don't think the time is right to buy the dip.

We think the volatility will continue for a while as we don't think the Russia-Ukraine issue will end anytime soon, at least not in the next month or two. In our February budget, we put crude at around $70-$75 a barrel. Today it's 110 and it looks like it could go up to 130-140. If that were to happen, our budget deficit figure would be completely skewed. It is likely that the currency will depreciate a bit based on this figure. But we wouldn't be surprised if we see a range bound to slightly negative market over the next six to 12 months.