This Monday Nifty has fallen sharply lower and hit record low in a single day in the history of stock market. Problem is corona virus has slowed down the world economy. Oil has fallen more than 30% from $ 54 to $35 from friday to saturday. A biggest fall ever has resulted in panic selling in Indian equities too. The oil has fallen due to price war between OPEC countries and Russia on production cut.
Tuesday was better day for the equities around the world with Asian markets closed positively with 1% to 2% returns. US markets have shown high volatility in which Dow first moved as high as more than 900 point in the opening trades then seen a fall where it has turned red and close in green surging more than 1100 point a return of more than 4%. This high volatility is disturbing for equity investment. US markets moved up due to expectation of Tax cut in US market to fight with Corana Virus. Europeans markets were not so lucky and close in red after trading in green for major part of the day.
This morning SGX Nifty is indicating a red start of NIFTY with the market opening at around 10400 which is negative opening from Monday level. Reason again is the soft opening of Asian markets as corona virus cases are increasing. Have a look on the Global stats at 7:51 am.
SGX Nifty Indicating a Red Start
Today our strategy is “Sell on Rally” on NIFTY as the technical charts are really weak and showing a Nifty level of 10100 in coming days. Situation of the market is really pathetic and scope of bounce is low. Even incase the markets moved up it will has resistance at 10600 level and you can open shorts at this level on first sign of weakness. On Monday, Nifty has broken 10600 level a major support level. Now the next support level is 10000 on Nifty. Do not short market on Opening as we have not participated on the upside on Tuesday due to Holi holiday and chances of going up is high for limited period of time. Look at technical chart of Nifty.
We have written an article that will help you in picking right stocks for long term portfolio