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Pre - Market Report (30th March 2020)


  1. US markets closed 4% weak on Friday & Asian markets are mostly weak.
  2. Markets are falling despite Stimulus measures announced by their Countries.
  3. SGX Nifty is 2% weak & trading near 8450 as of now.
  4.  Meanwhile , the Corona Virus fears aren't Settling down. More than 1.2 lakh positive cases reported in U.S .
  5. Testing Mechanism is slow in India compared to U.S .Positive cases are likely to increase in the coming weeks.
  6. Expect the Broader range to continue between 7500 to 9500. Expect Markets to trade in this range unless there is any Incremental news.
  7. If 7500 on Nifty is breached, then markets would go much lower.
  8. Last Bounce back on Nifty was from 8500 to 10100 around 18-20% & it got sold off Immediately in next 4 trading sessions.
  9. This time around we have a Bounce back from 7500 levels & we made a high of 9100 on Nifty. 
  10. I think the Pullback rally is likely to end & has weak legs to gain further Momentum.
  11. We should witness another round of selling in April Series.
  12. Meanwhile , RBI has done a very good job by coming 2.7 Trillion $ Liquidity package. This was much better than my Expectation.
  13. Rate cut was expected & RBI delivered.
  14. Futures Contracts on Nifty & Bank Nifty are Trading in Discount. This shows that Bias is more inclined towards the downside.
  15. This week expiry, we have only 3 more trading sessions. Thursday is a holiday on Account of Ram Navmi.
  16. So , it's a good time to start selling Options as VIX is high and also Premiums are also quite high.
  17. I would be mostly looking at "Short Straddles" for this Week Expiry as Markets are likely to move in a range.
  18. Holding Stock Option Trades as Mentioned in the Earlier Blog for Banks.
  19. Selling after a 2% gap down Opening does not excite me. I would be looking for Bounce /rallies on Intraday to sell into. 
  20. When I say I would be looking for Bounce to sell into I mean that I would be taking only 50% of my Positions firstly & rest 50% if market rallies more. This lowers my cost.
  21. Financials is going to be the most effected sector in this Turmoil so Expect Bank Nifty to Underperform.
  22. For Traders who are new & lack Conviction it's better to stay out in such Markets because the Movements are quite high & quick.
  23. Trade only when you have more than 90% Conviction.
  24. stockmarketadvisory.in

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