Pre Stock Market Report, September 09, 2020

Pre Market Report, September 09, 2020

 

1. U.S Markets fell 3% Yesterday.
2. Asian Markets are mostly trading Negative.
3. Yesterday morning, Dow future was up 350 points but when markets opened, fell 650 points.
4. That is a whopping 1000 points fall, after falling 2 days prior to that.
5. Nasdaq has fallen more than 10% in 3 days.
6. Tesla fell more than 20% as it was denied entering s&P 500 index.
7. Asian markets are down.
8. SGX Nifty is trading around 11270.
9. That is because we have already fallen 150 points yesterday afternoon.
10. But still we have to see when market opens.
11. Day before yesterday low for Nifty future was 11266.
12. I think that will be broken easily.
13. Bank Nifty is looking more weak and falling and making new lows.
14. Yesterday both Nifty and Bank Nifty closed at their lowest point.
15. India China border issues going on & Yesterday indian Border forces have issued some official Statement.
16. Corona Virus Cases are continuing to peak up.
17. Government is slowly opening up the Economy now.
18. GDP Growth rate was -24% (Negative)
19. Media won't show you this , later on when GDP comes in Positive Govt will come and take credit.
20. The point is it is so low now & with Opening up of economy , the Growth rate is bound to increase.
21. Banking stocks case is going on in Supreme court for interest waiver.
22. This is keeping Bank Nifty under pressure.
23. s everything negative?
24. No, there are some positives.
25. First, DIIs have turned net buyers.
26. Since they have been selling for last 10 weeks, they can support the market at lower levels.
27. Second, Crude has fallen by about 8% and that is good for us.
28. Brent crude is below US$40.
29. S&P 500 futures right now showing some green tick.
30. Usually markets will stabilise after falling 3 days and 10% fall.
31. So US markets may stabilise at lower levels.
32. Remember the fall came without any corresponding negative news.
33. So it is just excessive optimism has resulted in huge profit booking.
34. Asian markets are falling as they did not factor in US fall.
35. But we have factored in, yesterday afternoon.
36. Pharma stocks will be in focus after Astrazeneca paused corona trails.
37. Banks, Pharma looking more weak.
38. Reliance has been supporting the market for last two days.
39. Nifty future should take support at 11220.
40. Not a good idea to short the market at open.
41. However, can short with hedge as and when Nifty future trades above 11320.
42. Bank NIFTY rallied in August End but now has given up most of the gains.
43. Yesterday too markets were Trading in 80% of Trading session but last hour they fell apart.
44. This Market is looking very weak & a correction seems overdue now.
45. I will not buy in this Market.
46. I will just look at rallies to sell more.
47. Important is to follow the Trend to make big money.
48. Nifty might Trade between 11180-11350.