Let’s explore the reason for Surging US markets
- Gilead Sciences in its report announced a positive result on treatment related to corona patients using Remdesivir medicine.
- In its report the company highlighted low mortality rate and high recovery of corona patients using its drug.
- US Stocks rose on positive results on treatment of corona virus patients
- Florida, a state in US has reported highest number of cases on Sunday.
- Asian markets are trading with green biased this morning. (7:27 A.M)
- SGX Nifty is in green note this morning. (7:27 A.M.)
Why US markets are trading in green?
- US Stocks rose on news related Gilead’s Remdesivir drug clinical result showing low mortality rate and high recovery of corona patients under clinical trials.
- This has lifted sentiments in US markets and stocks ended with positive gains.
- Cases are rising at fast pace worldwide with U.S. toping the list with more than 3 million cases. From last few days, U.S. is seeing 60000 corona cases daily.
- This is the reason for restricting the reopening activities in U.S. by many Governors of different states.
- Still the uptrend from March 2020 is intact and rally will continue on the back of positive economical data is floating around the world. So traders should use this opportunity to build portfolios for long term.
- Still there is lot of under performance in Asian Markets and sooner or later these markets will have catch up rally as US markets are trading all time High.
- The markets are lifted due to huge liquidity supported by the Governments & Central banks of different countries. This surge may continue further once corona vaccine hits the market and result in bull run.
- Traders should not short the market for merely today’s fall as this is only a profit booking and may trap them at these levels.
- Our suggestion is remain buyer to these markets and use buy on dip strategy.
- Dow Jones Industrial Average increased by 369.21 points, or 1.44%, close at 26,075.30.
- The S&P 500 rose by 32.99 points, or 1.05%, ends at 3,185.04.
- Nasdaq Composite Index hit new high and gained by 69.69 points, or 0.66%, close at 10,617.44.
Asian Markets In Morning
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Nifty 50 outlook for the day.
- SGX Nifty is suggesting that Indian Markets will start at around 10800 level. Today strategy is to buy NIfty future at any dip near 10700 level and target is 10850. Also maintain stop loss at 10700.
- Wait for dip as upside is capped for the day at 10850 level
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Author: Akhil Mahajan, M.D. Mutual Fund Advisory, www.mutualfundadvisory.co.in