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Pre - Market Report (13th April 2020)


  1. US markets were up 2% on Thursday. Friday was a Universal holiday on account of Good Friday.
  2. Asian markets are Trading flat.
  3. SGX Nifty is likely to open on Negative side by around 0.5% .
  4. Lockdown is likely to be Completely Extended in India. Official Announcement from the Central Govt is awaited.
  5. People's Bank of China has acquired 1% stake in HDFC Ltd.
  6. We have Witnessed a reversal rally in Indian Stock Markets and this rally seems to be peaking out near 9400-9500 levels.
  7. Fitch Ratings on Friday lowered India Growth Forecast to 2% . 
  8. This is the lowest for last 30 Years.
  9. Investors should look for Companies which will survive this Crisis. 
  10. 50% of the listed Companies would be out of Business. Choose Quality Companies & stick to it.
  11. I wont be Surprised if Investors get Negative returns for at least an Year from here as things look seemingly poor on Economy front.
  12. Investors should be prepared for at least 1-2 Years of Underperformance & stick to companies with good Dividend Yield and Great Businesses as these will Outperform.
  13. Those who entered near 7500-8000 on Nifty and Deployed cash can start booking profits near 9200-9300 on Nifty. 
  14. I Personally would start booking some profits and will be waiting for lower levels to deploy more.
  15. All the World Markets have become Stable after a horrendous month of March. 
  16. On Thursday , Nifty broke & Sustained above the Important level on 9000. 
  17. If 9000 Sustains on Nifty for first half of Trading , I expect to close higher for today( Intraday basis) & today as well 9000 is a key level to watch out for.
  18. So trade is open on the higher side provided 9000 on Nifty isnt breached.
  19. If 9000 is breached and Sustained then one could explore short positions by finding next support and Resistance levels.
  20. Do not trade in first 1 hour of Markets today. Watch the Markets and Understand what the Markets up to. When you get an idea it's Advisable to trade.
  21. FMCG , Consumption & Insurance Stocks are performing well and are likely to extend their gains as well. So Equity traders can look for long Opportunities on this front.
  22. Almost all the Market Participants already knew that Lockdown would be Extended. So this is not an Incremental Negative news and I dont think markets would react to the same.
  23. As there are only 3 days for this Expiry ( Tomorrow is a Market holiday) option buyers are advised to stay cautioned. Exit your positions on Intraday basis and do not carry them for today.
  24. Expecting this Weekly Expiry to be between 8500 & 9500.
  25. Also Expecting Markets to Consolidate and not provide big moves in April Series as was Witnessed in March Month. So deep OTM Options might turn out to be risky.
  26. Reminder : Do not link Corona Virus news ( Deaths , Positive Cases etc)with Markets now. Markets Seem to have absorbed all of it and now only any Major Incremental News ( extending Lockdown etc) would only impact the Markets. 
  27. Consult your Financial Advisor & Trade on your own risk. 
  28. stockmarketadvisory.in

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