Pre Market Report, March 09, 2020 | Stocks and Commodities

March 09, 2020
Time: 8.15 am

Pre Market Report:

1. Gulf markets open on Sundays as they are closed on Fridays.
2. Yesterday Kuwait market fell 10% and hit lower circuit and hence it was closed.
3. Saudi Arabia down by more than 8%.
4. Brent Crude fell from US$50 on Friday morning to about US$31 today morning.
5. All Global markets are down.
6. Nikkei, Hone Seng down by more than 1000 points.
7. DOW futures also down by more than 1000 points.
8. Most markets are down by 4%. European futures also fell 4%.
9. SGX Nifty is down by about 300 points.
10. This crash is the worst after 2008 financial crisis.
11. Crude is down by 25%, Gold crossed US$1700.
12. So it is absolute panic everywhere.
13. India's position may not be that bad.
14. India is a beneficiary of fall in Crude prices.
15. India has already fallen due to local cues like YES Bank issue.
16. So the fall may not be very bad here.
17. But holiday tomorrow is a bi problem.
18. If markets fall tomorrow, we can not react, we have to react only on Wednesday for two days of Global reaction.
19. That may add volatility in the afternoon.
20. Who knows, some short sellers may choose to square up their shorts also towards the end of the day.
21. Nifty hit a low of 10670 on Sep 19, 2019.
22. Right now SGX Nifty indicates that level.
23. So if markets stabilise here, this could be the double bottom.
24. But fundamental news flow do not suggest that.
25. We can expect some coordinated action by some Central Banks now.
26. Corona Virus wiped out 400 points in Nifty, then YES Bank issue another 400 points and now Crude another 400 points.
27. Do not know what next? The fear is at its peak, if I am not wrong.
28. There is no need to look at FII figures and DII figures.
29. Corona virus reached 104 countries, but going forward, things may look better.
30. Expect another 1000 point fall in Bank Nifty today.