First Circuit in NIFTY ( March 2020 )

stock market crash 2020

First Circuit in NIFTY ( March 2020 )

Hello friends, in this article I will try to capture my first experience of circuit in stock market. I want to save it in my memory for me and for all the people who want to experience it in future.

So it was 13th March 2020. Believe me March 2020 will be the most horrifying month for many traders, investors for decades. We have witnessed correction in market and big rallies in stock market in last decade, that means 2010-2019. But 2020 had something different for us. 

I was watching TV like I do in normal days. Corona cases were rising day by day. That's why global markets were correcting each day. Volatility are at its peak. 

I remember it had picked to 60 in that day. Normally we trade or invest in VIX ranging between 10-30. But 60 VIX is something which many of us had never experienced. 

That day market opened, and it started to move down. Though it was anticipated from pre-session that we are going to get a circuit on the lower side, still watching it in front of your eyes is something which you crave for. 

Point by point it went down and the TV anchor was telling this is the level where Nifty will get a circuit. 50 point remaining, 40 point, 30 point, 20 point and CIRCUIT.

And Nifty closed with a circuit and trading halted for 45 minutes in stock exchanges.

I never knew about this halt, I never knew that there are rules regarding circuit in NIFTY and SENSEX. That day with me many traders and investors who had entered in market after stock market crisis 2008 learnt about circuits and their rules.

I was prepared with a portion of my money to infuse in equity market and I was waiting for dip like this. I invested that amount on that day and I was happy.

Mr. Anil Singhvi was saying that buy and you will get an immediate upside after market reopens. I didn't do anything because I want to live the moment, that's all and I lived. It will be memorable for me in my life time.

That day from the low of day Nifty regained almost 5-6% in intraday. The people who had invested on the recommendation of Mr. Singhvi had earned good amount. Again it was a experience. These are price less.

In the end of this article I will just say that stock market is a place where you learn every day.

CA Ashish Kumar

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