This morning Asian Markets are trading in mix territory. Some of the markets are experiencing profit booking. As most of these markets have a fantastic rally in the month of April on the back of:
- Lot of Economical packages are announced by Central Bankers and Governments. To name few: G 20 announced $5 trillion package, U.S. Federal Reserve package of $2.3 trillion and U.S. House of Representatives passed $ 2.2 trillion, European package of €1.7tn and many countries have taken similar steps.
- There is reduction in pace of corona virus cases. The steepness of infection curve has reduced. Countries like Italy and Spain have seen some respite in number of cases.
- U.S. President Donald Trump is planning to open the economy in coming days. White house has issued Guidelines for opening the economy. The ultimate decisions are with the Governors.
Global Clues for the Day
- U.S News: The White house and congressional Democrats on Sunday are closed to struck a deal of $ 450 billion economical package for refilling the depleted emergency fund for corona virus testing & to support small businesses.
- China News: This morning China has cuts its benchmark lending rate second time this year. The one year loan prime rate is lowered by 20 basis points to 3.85% from 4.05% previously. To reduce the borrowing cost for companies.
- India News: RBI on Friday has announced certain measures to improve the liquidity position in the Market. It has cut the Reverse Repo by 25 basis point to 3.75% from 4% previously. This will encourage banks to lend more to the borrowers.
|Indices||Current Value||Prev. Close||% Change|
|Nasdaq (Apr 17)||8650.14||8532.36||1.38%|
|FTSE (Apr 17)||5786.96||5628.43||2.82%|
|CAC (Apr 17)||4499.01||4350.16||3.42%|
|Dax (Apr 17)||10625.78||10301.54||3.15%|
|Nikkei (Apr 17)||19720.11||19897.26||-0.89%|
|Straits Times (Apr 17)||2610.86||2614.6||-0.14%|
|Hang Seng (Apr 17)||24433.66||24380||0.22%|
|Kospi (Apr 17)||1919.12||1914.53||0.24%|
|Jakarta Composite (Apr 17)||4645.34||4634.82||0.23%|
|Shanghai Composite (Apr 17)||2842.77||2838.49||0.15%|
|SGX Nifty (Apr 17)||9281.5||9309||-0.30%|
How to trade for the day?
Today Strategy is “Buy on Dip” on Nifty future with a target of 9350 level and stop loss at 9200. Trade near this stop loss to cushion your loss. Do not trade on opening, let the market fall and trade then.