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Pre - Market Report (25th March 2020)

  1. US markets closed 11% higher Yesterday only on the hope of a big STIMULUS package from the U.S Government.( 2 Trillion $)
  2. So that has nothing to do with our Markets because any Benefit / STIMULUS relates to that Country only.
  3. Meanwhile India is under Lock Down for 21 Days & this will take a huge hit of the Economy of our Country.
  4. I have my Sympathy towards the Government because they had a really tough decision to make & they have taken a timely decision to keep Health at utmost Priority.
  5. Businesses are closed for 21 days but the Stock Prices continue to trade in the Market. Strange , isnt it?
  6. Our FM hasn't announced any STIMULUS / Relief Package yet
  7. Reason behind this might be that each & every Penny available now is being used in Health Infrastructure. So I don't think that even when a relief package is announced it would be equal to the Stock Markets liking.
  8. Another issue here is the Uncertainty Element.
  9. Nobody Knows whether this would stop in 21 days or it may go on Further . Corona Virus will stop spreading in these 21 days or not.
  10. For a Population as of India's size it's very Difficult to control the people from not coming out. 21 days it a very large period so People might take it lightly after some days.
  11. This Government is known for taking bold moves bold steps everytime. Demon , GST etc but their Implementation wasnt upto the Mark. Hope everything is done in a planned phase now
  12. Coming to the Stock Markets , nobody can Predict when will me make a bottom and when will Market start going ahead. Market is far more Intelligent than "YOU & ME" & it has it's own way of Discounting the Future.
  13. Expect the Markets to go lower & lower & lower in these 21 days. As Everything remains shut the Economy will take a big dent.
  14. Stay away from Financial Stocks. These are the Companies which would be taking the biggest hit in this Crisis.
  15. Simple Strategy is to buy April Expiry OTM Puts and keep holding them for lower levels on both the Indices.
  16. Meanwhile Sharp rallies / Pullbacks may be witnessed but those remain an Opportunity to sell into the Markets again.
  17. Stay Safe , Stay Healthy. Markets are highly Volatile so if you are not sure of anything kindly stay outside or else you might be lose Everything what you have got.
  18. Kindly Consult your Financial Advisor before taking any Trades & trade on your own risk.
  19. stockmarketadvisory.in

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