Let’s explore the reason for surging gains on Nasdaq.
- German BioNTech firms & U.S. Pfizer are positive on their vaccines development to cure corona virus cases, first phase of trials results are showing some positive outcome.
- Still long way to go to find proper vaccine but US stocks enjoyed this positive news and rallied.
- Also Federal Reserve remarks to keep the interest low and support the economy, lifted the sentiments.
- Stocks in Wall street ends in mix territory in which Dow lost 77.91 points, S&P closed positively with 15.57 points gain and Nasdaq closed with gain of 95.86 points.
- Asian markets are trading with green biased this morning. (7.23 A.M)
- SGX Nifty is in positive note this morning. (7.23 A.M.)
Why Nasdaq hits all time high amid virus crisis?
- A positive news on corona virus vaccine results on first phase of trial lifted the positive sentiments. The results revealed that the human body has tolerated the medicine with little side effects. Still long way to go but any positive news on this front is keenly looked by the investors. The medicines are developed by German BioNTech firms & U.S. Pfizer.
- Federal Reserve comments to follow loosening monetary policy to spur the demand with no timeline is another positive development and resulted in the rally.
- A key negative near future for equities is rising cases with US that tops the list. Many Governors in US are rolling back their reopening plans to control the fast spreading cases.
US Markets
- Dow Jones Industrial Average decreased by 77.91 points, or 0.30%, close at 25,734.97.
- The S&P 500 gained by 15.57 points, or 0.50%, ends at 3,115.86.
- Nasdaq Composite Index surged by 95.86 points, or 0.95%, close at 10,154.63.
Asian Markets This Morning
| Indices | Current Value | Prev. Close | % Change |
| Nikkei 225 | 22,202.01 | 22121.73 | 0.36% |
| Straits Times | 2,614.08 | 2610.17 | 0.15% |
| Hang Seng | 24,741.38 | 24427.19 | 1.29% |
| Taiwan Weighted | 11,739.85 | 11703.42 | 0.31% |
| Kospi | 2,120.44 | 2106.70 | 0.65% |
| Shanghai Composite | 3,027.97 | 3025.98 | 0.07% |
| SGX Nifty | 10,472.00 | 10399.00 | 0.70% |
Nifty Outlook
- SGX Nifty is suggesting a positive start with rise of 0.70% at present time (7.23 a.m.). Indian Markets will start at around 10500 level. Asian markets are trading mix this morning.
- Today Nifty has high probability of trading with positive bias. We recommend you to trade in Nifty future and expect target of 10525 to 10500 upside and stop loss 10400. Wait for dip and trade near stop loss.
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Author: Akhil Mahajan, M.D. Mutual Fund Advisory, www.mutualfundadvisory.co.in, 9906357069
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