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Pre - Market Report (3rd March 2020)

Pre Market Report:

  1. Yesterday everything was going good but only till Afternoon until news of Corona Virus reported in India struck in and Market reacted severely to it.
  2. Nifty fell 400 points and Bank Nifty fell 1000 points before recovering some lost ground.
  3. Overnight US markets shot up more than 5%.
  4. Trump is trying his level best to Co-ordinate with Pharma Companies and to come up with a Solution for Corona Virus also Central Banks action relating to some rate cuts also played a major role.
  5. G7 Finance Ministers will meet together in a conference call.
  6. The problem now is that India may not follow Global cues.
  7. FIIs have sold for Rs 1354 crores.
  8. DIIs have bought for Rs 1138 crores.
  9. So the problem is not coming from Institutional side.
  10. SBI fell more than 8% from intraday high.
  11. GAIL has become a two digit stock.
  12. Moral of the story: No matter how cheap, do not invest in PSU stocks.
  13. ONGC at 15 year low, became two digit stock few days before.
  14. SGX Nifty broke 11000 yesterday evening.
  15. Now it is up by about 200 points from that low.
  16. At 9 am, Australia rate decision is due.
  17. But as of now, Asian markets are off their highs.
  18. Dow trades between 25000 and 26000 with high volatility.
  19. Same thing may happen here.
  20. Nifty may trade between 11000 and 11500 with high volatility.
  21. FIIs seem to be covering their shorts in F&O.
  22. FIIs long has gone up from 11% to 19% in Index Futures.
  23. That is actually a reason to worry.
  24. In case market falls, short sellers will be tempted to book profits and that will help to cushion the fall.
  25. If there are no shorts, then the fall will be free fall.
  26. Anyway, still FIIs have more than 80% short positionns.
  27. As long as Nifty is not breaking 11000, we can expect some recovery.
  28. Still my Advice would be not to go our there buying the Indices as of now. Picture is not clear and the amount of news flow is Quite high which is mostly on the Negative side.


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