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Pre - Market Report (11th March 2020)

Pre Market Report:

  1. US markets are highly volatile as S&P 500 VIX hit a high of 61.
  2. Every day Dow is making more than 1000 points move.
  3. Day before yesterday it was down by about 2000 points, highest one day fall but Yesterday it was up by about 1200 as payroll Tax cut is being proposed.
  4. Right now Dow futures down by more than 700 points
  5. Yesterday our Markets were closed but SGX Nifty went all over the places from 10170 and 10600.
  6. SGX Nifty is trading about 50 points lower.
  7. Crude has recovered as Russia has been hinting at negotiation.
  8. Usually Govts and Central Banks take some action when markets are at lows. If RBI cut Interest rates and Markets Bounce due to this news , this would again be a good Opportunity to sell
  9. History shows that Markets have never recovered only after an Interest rate cut & Emergency rate cuts have infact made situations worse in the past.
  10. This Payroll Tax cut may trigger a rally in US markets as and when it comes.
  11. Tomorrow ECB meeting is there, they are expected to take bold decisions to revive the Economy.
  12. Then next week is the Fed meeting & Fed is expected cut rates by 75 basis point.
  13. If required RBI may cut rates, if demanded by foreign Central Banks for coordinated action.
  14. Monday Reliance alone contributed 145 points for Nifty fall. (Down by 10%)
  15. As Crude recovered more than 10% since Monday evening, Reliance may move higher.
  16. So next week is very important for all these measures.
  17. Corona Virus may take time as cases are peaking out in many countries.
  18. In China, it is very much under control.
  19. Even China President visited Wuhan area and this is a positive sign.
  20. Corona virus started from China, markets fell all over the world, but the most resilient market is China's market.
  21. Monday's fall is the worst intraday fall in our markets.
  22. Nifty fell more than 500 points and that was for for third time, first two times due to Corona Virus and YES Bank.
  23. Nifty has lost more than 1200 points during these three days and Nifty has lost more than 2000 points since January 14.
  24. It has to consolidate for some time before moving higher. The rally won't be a Vertical rally it will take time. First Markets make a bottom , Consolidate & then move higher.
  25. Nifty future may trade between 10300 and 10600.
  26. 10700 was a big Support on Nifty as it was the Low made by Nifty before Corporate Tax reduction was done by Nirmala Sitharaman (Nirmala Candle)
  27. Support of 10700 was wiped up very easily by the Markets on Monday and we witnessed a huge fall
  28. Remember that when there is news & Macro Events. Charts don't work and your levels don't work. I haven't seen Charts from past 2 weeks but still caught big points on Nifty & double of that in Bank Nifty. When there is news there are no Supports , no Resistance. Markets only follow the News & Events.
  29. Traders who look at the Charts , trade for small 20-30 points move need to look at the bigger picture & learn to ride their positions as long as Trend is in their Favour. This will give you big Profits.
  30. So ignore all those Experts / Analysts who keep Predicting levels on Nifty on the Basis of Charts / Technical Analysis. A trader should analyse build a Trading Plan and find Opportunities to make money. 
  31. 10,000 is a very Important & critical level for Nifty for now. Markets in the past have almost bounced back around 4-5 times from 10,000 and it is a very Important & Psychological Support on Nifty.
  32. I wont advice buying into the Index.
  33. It's too early to say we have made a bottom , Markets have Discounted all the Bad news and we will recover from here.
  34. This Continues to be a sell on rise Market & any sharp rallies near 10650-10700 should be sold into with strict Stoploss
  35. Beginners and Amateur traders are not Adviced to trade in these sort of Market & from today the Volatility should be much higher than ever before.
  36. Sit on your Hands and refrain yourself from Trading with high Volumes & taking higher risk in these sort of Markets.


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