Negative things for the market:
Continues Lockdown is adding more pressure on our economy.
Almost all Supply chains have already got broken. These will take time to recover. Before their recovery, there will be no smoothness in economic activities.
It is a big question how government will bring a good size Stimulus Package for the Economy.
Earning Reports of Q4 have started coming. As per initial reports, it seems that many company may report disappointing numbers even in Q4 (which was less impacted from lockdown).
We don't know the exact number of Small firms and companies that are facing high level pressure and will declare themselves bankrupt during and after lockdown.
Positive things for the Market
Two biggest triggers for the market are Vaccine and Shift of US companies from China to India.
Many companies are trying to make vaccine for the coronavirus and many from them have already started trials on humans. If all goes good, then we can expect a potential vaccine by June or July.
Second trigger for the market is of shift of manufacturing hub in the world. By looking at the current conditions, it seems that many US companies may soon consider to shift their businesses from China to India.
Relations of China with European countries and US have already started declining and can more decline soon. This can force many Europe and US companies to shift from China.
Complete shift of manufacturing units and businesses are unlikely. But significant portion of volume can be considered by companies to shift from China to other nearby countries.
All over the world, our Prime Minister already has a good image. So, this can help our country a lot in future to attract these companies and many may really consider India as their preferred location for the possible shift.
If this happens, this will be a very big trigger for Indian stock market.
For short term, it is very difficult to say in which direction the market (Nifty50) will go in the future? Or will remain stabilised around 9,000 levels???
In this market, you should avoid any lump sum/bulk purchasing in shares as this could be very risky for you! Also, avoid those stocks which are already trading at very higher levels or have gain a lot from lower levels.
Prefer buying only those stocks in good quantity where you think current levels are lowest possible levels or offering you good value.
Doing this thing will be beneficial for you whether stock market rises or falls in short term.
Now, I am ending this article here. Hopefully, you will make better trades and take better investment decisions.
Good luck :)