It was one of the most volatile weeks the share market in India has seen in recent times. In fact, the Nifty has not seen a fall as huge as 6 per cent on a single day as seen on Monday. Though the market recovered some lost ground, the Nifty and the Sensex were still down 3.6 per cent for the week.
If it was not for domestic buying from domestic institutions the markets would have collapsed badly in trade. They lent support to the markets from Tuesday onwards after the sharp fall on Monday.
Indian benchmark indices may continue to exhibit immense volatility the next week. It is most likely that the Indian markets would continue to move in tandem with global markets. Every steep fall in the markets is likely to be supported by domestic institutions.
There is no much of data that we are likely to see from India.
So what should be the strategy?
The best thing to do would be to wait on the sidelines for the dust to settle. Traders of course are unlikely to stay away given the immense volatility which offers scope to make money. Investors should adopt a wait and watch approach and look at buying into select stocks with strong fundamentals.