Pre Market Report, February 24, 2020 | Stocks and Commodities

February 24, 2020
Time: 8.15 am

Pre Market Report:

1. US markets closed lower on Friday as Corona Virus spread to other countries.
2. South Korea is the worst affected country outside China.
3. South Kora index Kospi has fallen more than 3%.
4. All Asian markets are down.
5. The Fear is at its peak.
6. Gold surpassed US$1700 per ounce.
7. Nifty future traded around 12150 for most part of the day on Thursday and came under profit booking and closed at 12080.
8. Now SGX Nifty is trading at 11955.
9. That is a huge gap down of about 125 points, if Nifty future opens around that price here.
10. Crude is also down by 3%. That is a consolation for us.
11. What was surprising is that FIIs bought for Rs 1500 crores in Cash market on Thursday.
12. DIIs sold for Rs 700 crores in Cash market.
13. But the fear of Corona virus is extreme.
14. China is seeing less new cases of Corona Virus affected people while outside China it is more.
15. Nifty future has been moving violently for the last few days but within the range 11900 and 12250.
16. We have 4 more trading sessions for this expiry.
17. As long as 11900 is held, we can hope for some recovery.
18. Otherwise Nifty future can slide to 11700.
19. Nifty 11700 is the next major support. It was around 11700 before parliamentary elections in May 2019.
20. Now everything depends on the spread of Corona Virus.
21. Markets will see a sharp rally only after Corona Virus subsides.
22. Pharma stocks are in trouble. Auro Pharma and Sun Pharma will be in focus.
23. Nifty future may take support around 11920.
24. Resistance will be around 12020.