Asian Markets are trading positively, ignoring WHO warning.
Let’s explore the reason for surging gains on Asian Markets.
Globally world economy is recovering fast from the impact of this pandemic resulting in investors optimism.
Surging covid-19 cases are key risk to equities in neat future. Since it can put breaks on opening of the economies around the world.
WHO on Saturday communicated 200000 covid-19 cases in past 24 hrs, highest number of cases reported since the outbreak of the crisis.
Asian markets are trading with green biased this morning. (7:05 A.M)
SGX Nifty is in negative note this morning. (7:05 A.M.)
Why Asian stocks are trading in green?
In past one month, investors are finding that the world economy is recovering fast during this covid-19 era. This has been the reason for this optimism.
US markets are the example this positive investors optimism. There is a V-shape recovery with Nasdaq hitting all time high. So others markets have also started to recover fast.
Covid-19 cases are now surging at much faster rate and a real risk to new restriction to the economical activities in order to control the cases. This can derail the economical recovery and stock markets can again take a hit. So trade with cautious must be the order for the coming days.
WHO has communicated 200000 cases in past 24 hrs on Saturday, highest cases reported in 24 hrs since the pandemic.
SGX Nifty is suggesting a positive start with rise of 0.44% at present time (7.05 a.m.). Indian Markets will start at around 10600 level. Asian markets are trading positive this morning.
Today Nifty has high probability of trading with positive bias. We recommend you to trade in Nifty future and expect target of 10650 to 10700 upside and stop loss 10500. Wait for dip and trade near stop loss.