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Pre - Market Report (7th April 2020)

  1. US markets closed 7.5% higher Yesterday.
  2. All Asian Markets are also Positive by an Average 2-4% .
  3. SGX Nifty at around 8.30 AM is up 400 Points.
  4. This Pre - Open rally is Indicating that Markets are not reacting very highly on Negative news as we Witnessed in the Month of March.
  5. Those who feel that just by buying Put Options and holding it in Bear Markets can give you profits each & everytime , this is not the case.
  6. The Rallies in Bear Markets are very sharp and Fierce.
  7. We are in a highly Volatile Bear Market & if one doesn't manage risk Properly you will lose everything in Trading.
  8. I have been advicing from almost 2 weeks now that this is a good time to build Portfolio and Accumulate Stocks for long term.
  9. Investors first aim should be to pick Companies which will sureshot survive after this Tragedy.
  10. These type of Investments will give you good returns in coming Months. Do not start looking for Fancy Names and new Companies.
  11. Companies which are down 30-40% in this Crash will recover very Quickly when market rallies and Companies which are down 70-80% would not & continue to keep sinking.
  12. So don't buy what's just cheap. 
  13. Buy Quality Stocks which are Available at good Valuations.
  14. Though Markets fell on Friday , Put Option Premiums were not risking Proportionately due to Falling VIX.
  15. This is again a Truncated Week for Stock Markets and Friday is also a Market Holiday.
  16. The Larger Trend is still Bearish.
  17. Markets will continue to surprise everybody by these Sharp Rallies time & again.
  18. One should always Remember that these are Interminnent rallies and won't last long.
  19. Markets have their own way of Trading because of Oversold & Overnight Positions the picture might look different in short term.
  20. India will continue to Underperform all the Global Markets & Bank Nifty will continue to Underperform Nifty.
  21. Each & every rally is an Opportunity to keep Accumulating April Series Put Options.
  22. Remember that Markets don't collapse in a Straight line , there will be rallies , gap ups etc. You should keep all this into consideration while placing your Trades.
  23. There is a high Probability that Lockdown will be Extended which will weaken our Economy Further.
  24. My Advice is not to carry any Positions for Trading.
  25. If you are taking Trades exit them Intraday itself. As we are Witnessing big gap ups & gap downs on a daily basis.


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