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Pre - Market Report (2nd March 2020)



Pre Market Report:
  1. February was the Worst Month for Stock Market.
  2. We are beginning March with some optimism as GDP Data was a bit higher.
  3. Over the weekend, first death reported from US and Australia.
  4. China Manufacturing PMI came at 35, the lowest on record & Chinese Markets shed 500 points in the Morning due to this.
  5. Dow futures were down 500 points in the early morning.
  6. Then came the news: BOJ's Kuroda says will take steps to stabilize markets & all markets recovered after this news.
  7. Japan's Nikkei index shot up about 400 points.
  8. But any bounce will used by short sellers to sell.
  9. As the announcements by Fed and BoJ are general in nature, no specific announcements.
  10. Auto sales data for February are very bad, except for Maruti.
  11. Maruti sales fell by a couple of percentage while Tata Motors and M&M sales fell 35, 40%.
  12. Remember on Friday, only two stocks closed in Green, Maruti and IOC.
  13. So markets seems to know the figures even before announcements.
  14. Brent Crude has fallen below $49.
  15. Gold is also falling.
  16. SGX Nifty hit a low of 11017 and that should be the low for the short term.
  17. But the bad news from Corona Virus is not stopping.
  18. For most part of Friday's trading, Nifty future was trading around 11300.
  19. So as long as Nifty future does not cross 11300, we have to be careful.
  20. Since the volatility is very high, premiums also are very high.
  21. Selling Call options nearer may be dangerous as Govts start talking of measures to stabilise the markets.
  22. The fear is so high, even 10150PE trading around Rs 15 in weekly options which is Insane.
  23. This means, Nifty will have to fall more than 1000 points in next four days for thse buyers to make profit.
  24. Last time, this kind of fear was seen only in 2008.
  25. SBI is a stock to watch as SBI Card IPO opens today.
  26. If that receives good response, SBI will help Bank Nifty to stabilise.
  27. Im getting many Queries like should we invest in the IPO in falling Markets will it reach Expectations etc. I think this should get much better response in falling Markets as people do not have any other Alternative to invest . All have lost so badly in last week that they would like to cover up the same through this IPO. So the Response should be Fabulous.
  28. No point in predicting Nifty range in high volatile markets.
  29. I think the easy Money has been made on the Downside and the pace of the Fall should reduce from now on. If we keep falling at this Pace i need to close my Office and go to Himalayas:-)& Nifty would become Zero by April End. So , the pace at which we were falling last week should be curtailed.

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