How to trade in stock market during Coronavirus crisis?

Covid-19 (Coronavirus) has bought a lot of uncertainty in stock markets all over the world. No one exactly knows when this will end and what will be the peak point of this virus.

It is underpredictable to say how much markets would fall due to this virus spread. But Surely, it will not last for the years and will end in the next few months.

Below, I have prepared some important points you have to take care of. In this coronavirus crisis, if you followed these points, you maybe able to avoid unnecessary losses and help in making better decisions regarding stock trading and investment.

Things to remember while trading and Investing in stock market during current crisis of Covid-19 (Coronavirus) :–

1. You don’t have to purchase or invest in shares in bulk. For next several weeks, market may remain volatile. You have to hold some CASH even if Nifty falls to 7000 levels.
2. Sectors where Coronavirus impact will be marginal or no significant.
   • Fast Moving Consumer Goods (FMCG companies)
   • Telecom Companies
   • Hospitals
   • Laboratories companies
   • Pharmaceutical companies
   • Other medical related companies
   • Dairy Products Manufacturers
   • Insurance Companies
   • Broadcasting and Media Companies
   • Cable Service Providers
   • Power Generation and Transmission companies (will have significant negative impact but will still be able to generate some revenue)
3. Lockdown will stay atleast for 1.1+ months in India. So, don’t assume or think that market will continue to rise if it is currently rising and likewise don’t assume that market will definitely fall more if it is currently falling. Market will remain volatile for next 1+ months and levels above 10,000+ in Nifty will be very difficult to see in this time.
4. In some stocks, you may have to take exit with small profits. In some other cases, you may get a chance to take exit with a good profit. But in most of the cases, taking an exit from stocks with a profit will be a good decision. You will get number of opportunities in next 1-2 months.
5. Those companies having good cash and Bank balance (you can find it through last financial results) could be a safer side in this market. After end of Covid-19 in country, these companies will be able to restart their business operations much faster.