Market Shock Response

Rapid-response workflow for significant market events (crash, flash crash, geopolitical event, policy surprise).

Trigger Conditions

Use this skill when:

• Nifty/Sensex drops >3% in a single session
• Major geopolitical event (war, sanctions, trade war)
• RBI surprise policy action
• Global contagion event (US recession, China crisis, banking crisis)
• Currency shock (INR >2% move in a day)

Workflow Chain

Phase 1: Market Brief

Get the current market state immediately.

bash ${CLAUDE_PLUGIN_ROOT}/scripts/fetch-indices.sh
bash ${CLAUDE_PLUGIN_ROOT}/scripts/fetch-fii-dii.sh

Search web for the latest:

• What triggered the market move
• Global market context (US futures, Europe, Asia)
• FII/DII activity today
• India VIX level

Present a 5-line situation summary.

Phase 2: Portfolio Impact Assessment

bash ${CLAUDE_PLUGIN_ROOT}/scripts/enrich-portfolio.sh
bash ${CLAUDE_PLUGIN_ROOT}/scripts/check-alerts.sh

Calculate:

• Portfolio value change today (estimated from index moves if real-time not available)
• Most impacted holdings
• Sector-wise impact
• Comparison to portfolio's historical drawdowns

Phase 3: Historical Context

Read relevant scenario files:

cat ${CLAUDE_PLUGIN_ROOT}/knowledge/scenarios/*.md

Compare current event to historical parallels:

• How similar events played out (drawdown, duration, recovery)
• What worked/didn't work as a response
• Sector rotation patterns that followed

Phase 4: Risk Check

bash ${CLAUDE_PLUGIN_ROOT}/scripts/monte-carlo.sh $(total_value) $(equity_pct) $(debt_pct) $(gold_pct) 5

Present:

• Updated probability distribution given current volatility
• Worst-case scenario analysis
• Whether current allocation can withstand further downside

Phase 5: Action Recommendations

Based on severity, recommend one of:

HOLD — Minor Correction (<5%):

• Don't panic — this is normal volatility
• Review if SIPs are running (let them benefit from lower prices)
• Check for tax-loss harvesting opportunities

WATCH — Moderate Drop (5-15%):

• Review asset allocation — consider tactical rebalancing
• Deploy cash buffer into equity if available
• Increase SIP amounts temporarily (buy the dip with discipline)
• Avoid selling quality holdings

ACT — Major Crash (>15%):

• Rebalance: sell some debt/gold to buy equity (buy low)
• Deploy emergency deployment capital (if pre-planned)
• Prioritize quality large-caps over mid/small
• Extend investment horizon expectations
• Review stop-losses on speculative positions

Phase 6: Client Communication Template

Generate a client communication template:

MARKET UPDATE — {DATE}
══════════════════════════════════════════
Dear {Client},

WHAT HAPPENED:
[1-2 sentence summary of the event]

YOUR PORTFOLIO IMPACT:
[Estimated impact with specific numbers]

OUR ASSESSMENT:
[Severity: Minor/Moderate/Major]
[Historical parallel and expected recovery]

RECOMMENDED ACTIONS:
1. [Most important action]
2. [Second action]
3. [Third action]

WHAT WE'RE NOT DOING:
- Not panic selling quality holdings
- Not timing the bottom — deploying systematically

We're monitoring the situation closely.
══════════════════════════════════════════

Save to ~/.wealthstack/reports/market-shock-{date}.md.

Phase 7: Follow-Up Schedule

Set follow-up checkpoints:

• 24 hours: Re-assess if situation has stabilized
• 1 week: Check if portfolio has recovered
• 1 month: Full review of actions taken