Pre Market Report, March 16, 2020 | Stocks and Commodities

March 16, 2020
Time: 8.15 am

Pre Market Report:

1. Dramatic actions in stock markets since Friday morning.
2. Our markets closed at lower circuit along with SOuth Korea and Japan on Friday.
3. During the 45 minutes closure, European and US futures shot up.
4. Once we started trading again, markets shot up.
5. LIC reportedly pumped in large amount of money to support the market.
6. Short covering also set in.
7. Nifty future fell 1300 points then shot up 1800 points.
8. Once our markets closed, action began in US markets.
9. Trump announce emergency and that will help to release lot of money to fight against Corona.
10. Dow shot up 10%.
11. Next day, Apple announced closure of all its stores outside China.
12. Apple is an index heavyweight in all three US indices.
13. Today early morning the biggest surprise came from Fed.
14. Fed cut rates by 1%. It also announced QE of 700 billion and other liquidity measures.
15. Other G7 countries also seems to be coordinating.
16. Despite all these measures, US futures fell 5% to hit lower circuit.
17. But some Asian markets are higher.
18. Asia is mixed. Japan and South Korea are up while other markets are down.
19. SGX Nifty is down by 400 points.
20. SGX Nifty is totally confused and decided to trade at Thursday's closing level.
21. Meanwhile, YES Bank restructuring news came as a very bad news.
22. Those who are holding more than 100 shares, can not sell more than 25% of their holding for next 3 years.
23. This kind of restrictions has never happened in India, not only in India, in entire world.
24. China Manufacturing data came very bad at minus 13.5%.
25. But Asian markets seems to have factored in that news.
26. Markets are not reacting after this news.
27. FIIs have sold for Rs 6000 plus Crores in Cash market.
28. Market volatility is here to stay for some more time.
29. If you have no positions, best way is to keep away from markets.
30. Wait for India VIX to fall below 30, to restart the trading.
31. US cut rates by 50 basis point a week before and another 100 basis point now.
32. Many other countries also have done that.
33. Will India do the same? That has been going on in people mind for the last one week.
34. Meanwhile, SEBI seems to be considering a Ban on Short selling and Intraday Trading.
35. But in the past, this kind of measures helped markets to go lower rather than helping it to stabilise.