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Pre - Market Report (23rd March 2020)

  1. US markets were down 7% on Friday & almost all the Global Markets were down 6-7% on an Average.
  2. Asian Markets are also Negative.
  3. SGX Nifty indicating a 12% +(1050 Points) Cut in Pre - Open itself.
  4. That means we are going to open at a Lower Circuit Today. Every Possibility that we can go 20% lower Circuit today.
  5. The Financial Sector is going to get Impacted the most.
  6. Every business is down , Individual people who have taken loans etc will not be able to pay their EMI's so they will be Unable to repay the loans. Financial Sector will be Impacted the most in this kind of Scenario.
  7. Recession has already begun in the World Economy. We could be heading to a Great Depression as was done in Year 1930.
  8. Government seems to be Focusing only on the health issues of the Country & not focusing on the Economy Front.
  9. Previously , before Corona Scares we were Struggling on the Economy front now Corona Virus is a double whammy for Dalal Street.
  10. FIIs continue to sell at an amount of 4000 to 5000 crore.
  11. This kind of selling was not Witnessed even in Year 2008. First time I have Witnessed Markets down 40-50% in a Month.
  12. 8000 was the Support on Nifty & we are opening below the Support level today.
  13. 7500 is the next Support on Nifty.
  14. Shorting is not advised as we are opening at lower Circuit itself. Buying is not Advised as we may hit 20% lower Circuit as well. So nothing to do in the first half of the Markets.
  15. Look for a Momentum & rally in 2nd half of today's trading Session. Like Previously, if LIC enteres the Market after lower Circuit , we may witness recovery today.
  16. I had advised on Friday not to carry any Positions because Anything might happen over the Weekend. So its not Advisable to Gamble for Pre open moves.
  17. I will not be doing Anything in the first half of today's session , will see for a clear Direction and Trend and will trade the same.
  18. However if the picture is not clear after first half also I will be sitting out.
  19. Receiving many texts as in which type of Stocks should one Invest in these type of Markets. I would advice you to stay out of Financial Sector now. Just heard the Management Commentory of IDFC first Bank on Friday as the Management sold 2.5 Crore shares & when asked the reason for the same they mentioned that they have to pay loans so they have sold their share & their Business is not at all Impacted by Corona Virus.
  20. This is Rubbish , Management wants to exit their shares and they want people to buy their shares. Every Financial Company will be Impacted by this Onslaught. Do not believe any Management saying ALL IS WELL " & Business is Normal.
  21. Consumer Sector & FMCG Sector would be safe bets as of now.


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