Pre Market Report, March 2, 2020 | Stocks and Commodities

March 2, 2020
Time: 8.15 am

Pre Market Report:

1. Worst month for Stock Markets, February is behing.
2. We are beginning March with some optimism.
3. Over the weekend, first death reported from US and Australia.
4. China Manufacturing PMI came at 35, the lowest on record.
5. So markets fell in the morning.
6. Dow futures were down 500 points in the early morning.
7. Then came the news: BOJ's Kuroda says will take steps to stabilize markets.
8. All markets recovered after this news.
9. Japan's Nikkei index shot up about 400 points.
10. But any bounce will used by short sellers to sell.
11. As the announcements by Fed and BoJ are general in nature, no specific announcements.
12. Our GDP came at 4.7% which is not bad.
13. Auto sales data for February are very bad, except for Maruti.
14. Maruti sales fell by a couple of percentage while Tata Motors and M&M sales fell 35, 40%.
15. Remember on Friday, only two stocks closed in Green, Maruti and IOC.
16. So markets seems to know the figures even before announcements.
17. Brent Crude has fallen below $49.
18. Gold is also falling.
19. SGX Nifty hit a low of 11017 and that should be the low for the short term.
20. But the bad news from Corona Virus is not stopping.
21. For most part of Friday's trading, Nifty future was trading around 11300.
22. So as long as Nifty future not crossing 11300, we have to be careful.
23. On any bounce towards 11300, good to sell Call options, far OTM.
24. Since the volatility is very high, premiums also very good.
25. Selling Call options nearer may be dangerous as Govts start talking of measures to stabilise the markets.
26. The fear is so high, even 10150PE trading around Rs 15 in weekly options.
27. That means, Nifty will have to fall more than 1000 points in next four days for thse buyers to make profit.
28. Last time, this kind of fear was seen only in 2008.
29. SBI is a stock to watch as SBI Card IPO opens today.
30. If that receives good response, SBI will help Bank Nifty to stabilise.
31. No point in predicting Nifty range in high volatile markets.