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Pre - Market Report (20th March 2020)

  1. US markets have Stabilises Yesterday & for the first time in last 10-15 Trading Sessions it has not moves more than 5%.
  2. Asian markets are all positive.
  3. SGX Nifty hit a low of 8000 yesterday night, now trading almost flat.
  4. Yesterday our markets experienced worst volatility.
  5. In first 3 minutes Bajaj Finance fell 20%, then shot up 20% only to fall 10%.
  6. 50% move in just one trading session, that too for a bluechip stock.
  7. Same was the case with many other stocks like HDFC Twins, Kotak Bank etc.
  8. Nifty fell 700 points then shot up 700 points and then fell 300 points.
  9. That is a total swing of about 20%.
  10. FIIs continue to sell at an amount of 4000 to 5000 crore.
  11. This kind of selling has not happened even in 2008.
  12. Now commodities also moving violently.
  13. Crude down 25% one day, 25% up next day.
  14. Coming to today's trade. I am expecting some Recovery/ short covering today.
  15. PM hinted some stimulus by saying 'Economic Task Force" headed by FM.
  16. Govts all over the world are taking some steps.
  17. So it will make sense for short sellers to cover the shorts today (and to short again on Monday morning) so as to avoid loss due to any big gap up.
  18. They are not likely to lose, as markets are at very low level, possibility of gap down is very low.
  19. Though markets were very bad, stocks like HDFC Bank closed in Green yesterday.
  20. Moreover, we can expect LIC to enter again today afternoon, to support the market.
  21. We have fallen almost 4400 Points on Nifty from it's all time high of 12400. Won't be Surprised if we can recover for 500-600 Points from here on.
  22. Incremental Shorting is not Adviced at current levels as your risk / reward doesn't favour.
  23. Trading for a Bounce / Pullback rally has risk /reward ratio of 1:3 which I prefer to Trade.
  24. However , im a Trader and I may be Wrong and have every right to change my Positions when I am wrong , so if my plan is not being respected by the Market I may alter it.
  25. Finance Minister may at anytime announce STIMULUS PACKAGE for Corona Virus this Weekend. Also there would be a whole lot of news related to Corona Virus so always Adviced not to carry fresh Positions over the Weekend.


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