Hot Stocks | Why Apollo Hospitals, Alembic Pharma are short-term buys

Since the gap down opening on Feb 28, the benchmark index Nifty has continued to trade below its 'continuation gap' and is looking weak at the current juncture.

In the last three out of four trading days, despite a gap-up opening, the Indian benchmark index could not hold on to the gains and witnessed negative closing with long red candles. This structure indicates bears are dominating bulls.

Nifty on March 4 slid almost 200 points during the day but witnessed a sharp recovery in the second half of the session.

For the time being, the index has managed to close above the 100-week exponential moving average on the weekly chart, but on the daily chart, there is an altogether different story as Indian bourses are nicely settled below their medium and long-term exponential moving averages.

The contagious nature of coronavirus is more concerning, and it would be difficult to predict a bottom, but at the same time, a bounce-back would also be equally fierce.

The overall market at the current stage is reacting sharply to coronavirus as it increases the fear of global slowdown.

So, prices are not respecting any technical and fundamentals levels at this juncture. But, this situation will be short-lived and the market will resume to normal soon.