In previous week, Nifty has found support at 7500 level and bounced back to 9000 level on Friday. Credit goes to global markets, as they have bounced back from their lows. Many countries have come out with lot of announcements both on fiscal and monetary side to fight against covid-19. On Friday, United States has announced a package of $2 trillion to support their economy.
Last week, Indian Government has also announced Rs 1.7 million package. Reserve Bank of India also came out with lot of measures to support the Indian economy. It has reduced the Repo rate by 75 basis point along with many more steps.
Even after all these good announcements both globally and domestically. The SGX Nifty is showing a negative start. This morning the global markets are in deep red due to wide spread of corona virus issue. The cases are increasing at a fast pace around the globe. This is a worrisome signal for the world economy and markets are not liking it. Due to this, world can enter into recession.
Where we are heading?
In our opinion, Nifty can retouch its low of 7500 level in near future. As corona virus cases are increasing in our country. And with 21 days lock down the economy is standstill. Also the way cases are increasing in US markets are really alarming. Presently our markets are dependent upon global sentiments and the way investors around the world are becoming scary. This is not good for our markets too. Our recommendation is to buy stocks systematically only.
How to trade for today?
For the day, the Nifty can touch a low of 8300 level. As sentiments are really negative. The major dent to the markets sentiment is the news related to ” Suicide committed by German Finance Minster of Hesse State”. So you can open new short in the Nifty future with a target of 8200-8300 level and stop loss at 8700 level.