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Pre - Market Report (24th March 2020)

  1. US markets closed 3% lower Yesterday.
  2. U.S Fed Announced Unlimited buying power of Assets & also unlimited printing of money to bring enough Liquidity into the System.
  3. Meanwhile , Corona Virus cases doesn't seem to stop. Infact they have Constantly been rising day by day.
  4. Markets are likely to settle only when some Cure / Vaccination is Developed for Corona Virus.
  5. Meanwhile our Government & FM have not announced any sort of STIMULUS , relief package for the Economy. 
  6. This is a very bad news for our Stock Markets because everybody was expecting some Measures from the Govt & now due to ignorance over the Economy our Markets may go much more lower.
  7. India has around 500 active cases of Corona Virus currently & this can easily shoot up to 25000-30000 in a few weeks. Social Distancing is Important but issues related to testing etc should be tackled very Quickly.
  8. Im not being Pessimistic but im being Realistic & Mentioning that if we do not find cure for Corona Virus in next 1-2 Months we might be heading towards a Great Depression.
  9. Great Depression is when everything goes down by 90% ( Witnessed in the Year 1930)
  10. Stock Markets tend to Discount the Future & noticing the fall in Stock Prices now I think they are Discounting something nobody have thought of.
  11. SGX Nifty right now is up by 6%. These are the best times to go short in Bear Markets.
  12. Rallies should be sold into so the first trade would be to sell into the Rallies through April Puts on both Nifty & Bank Nifty. As only 3 days away for Expiry buying Puts of March is a risky event.
  13. Right now I do not have a Stoploss for my April Puts which I will be going to take because Markets are very Irrational & no level seems to work here.
  14. So the best thing is to follow the Conviction.
  15. I'll keep holding onto my puts until my Conviction stays in order. So kindly note that it's not only just for Intraday. Im willing to carry & hold onto this trade.
  16. Also right now I do not know when I will exit my Put Options as well. I would be managing my Position & keep Trailing Stoploss according to the Market.
  17. This appears to be a Dead Cat bounce on both the Indices & should likely be sold into & by the end of the day we can expect lower levels on both Nifty as well as Bank Nifty.
  18. It is also a good time to build Portfolio of FMCG , Consumption Stocks by deploying some Percentage of your Money.
  19. In Bear Markets sharp Pull Backs / Bounce will come but they are only an Opportunity to sell into the same.
  20. These Trades also have risk / reward in your Favour & today the ratio appears to be 1:4.
  21. Nobody Knows when will we bottom Out & solve this problem so it is a good time to Accumulate stocks on every fall.
  22. Views Expressed here are Personal & please refer to your Financial Advisor before entering a trade & Trade at your own risk.


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