Tag: short covering

Short covering led 20th March rally, tread cautiously

Saturday, March 21, 2020
Despite a rise in the number of cases of coronavirus and shutdown enforced in many cities, Indian equity induces paused their losing streak and bounced on 20th March(Friday), surprising many. Nifty has fallen nearly 35 percent from its record high in January. On 20th March, the market bounced on smart gains in energy, pharma, and FMCG stocks. A rally in global markets also helped improve sentiments in India. Analysts tracking the market said Friday’s rally was largely led by short- covering, and buying might emerge despite negative sentiments, depending on how global investors chart their path. However, they cautioned investors not to read too much into it. Read more