Today Indian markets will open with a deep cut and will straight away hit the lower circuit. As global cues are not supporting a postive start and SGX Nifty is trading with cut of 10% in the morning. This will make things worst as market has already fallen by 30% to 35% in last 40-50 days.
Incase, SGX Nifty breaks the 7860 level then it has high chances to move 6800 level in near future. The Nifty 7860 level is important level as the market has found support in December 2016. From here markets have moved to 12400 level in January 2020.
So that is why this is most crucial level? And in case, it breaks this level then next support is at 6800 level. Really things are scary and the way levels are breaching has proved fatal for long term portfolios.
NIFTY TECHNICAL CHART
In last two days, the corona virus cases are increasing in our country at a rapid pace. This will create a negative sentiment in the stock market and chances of breaking the 7865 level is quite high. On Sunday, In India the corona virus cases has surged to 396 – the highest increase in last 24 hours.
Covid-19 has proved to be party spoiler for the bull market. This event has put the economic activities standstill. The companies have advised the employees to work from home in this tough time. No body is willing to spend money on non essential items in the present scenario. It will be difficult for the policy makers to put the economy in growing phase in near future. That is what making the markets nervous and leading this fall. It will take at least two quarters for the economy to come out of this problem as things are really gloomy.
CORONA VIRUS CASES AROUND THE WORLD
This is a global issue and impacting the whole world . The number of corona virus cases have surged in many parts of world. The epicenter of the disease has moved from China to Europe and the way it is spreading is really scary. The major countries that are impacted are: China, Italy, USA, Spain, Germany, Iran, France, South Korea and Switzerland. That is why markets around the world have fallen sharply and Indian markets are showing the same weakness. Things will improve only if the scientist are able to manufacture vaccine that can cure the disease . This is the right time, one should build long term portfolio in a systematic manner. In our previous post, we have already disclosed long term portfolio (https://onlinetradeindia.com/2020/03/18/stock-correction-can-be-looked-as-an-opportunity-to-buy-quality-stocks-in-systematic-manner-with-next-12-months/). As bear markets give opportunity to create a long term portfolio, since stock prices are depressed.
Have a look on the corona virus data compiled for different countries from website https://www.worldometers.info/coronavirus/coronavirus-cases/.
| Countries | Total Cases | New Cases | Total Deaths | New Deaths | Total Recoveries | Active Cases | Serious Cases |
| China | 81093 | 39 | 3270 | 9 | 72703 | 5120 | 1749 |
| Italy | 59138 | 5476 | 7024 | 46638 | 3000 | ||
| USA | 33546 | 419 | 178 | 32949 | 795 | ||
| Spain | 28768 | 1772 | 2575 | 24421 | 1785 | ||
| Germany | 24873 | 94 | 266 | 24513 | 23 | ||
| Iran | 21638 | 1685 | 7913 | 12040 | |||
| France | 16018 | 674 | 2200 | 13144 | 1746 | ||
| S. Korea | 8961 | 64 | 111 | 7 | 3166 | 5684 | 59 |
| Switzerland | 7474 | 98 | 131 | 7245 | 141 | ||
| UK | 5683 | 281 | 93 | 5309 | 20 | ||
| Netherlands | 4204 | 179 | 2 | 4023 | 354 | ||
| Austria | 3582 | 16 | 9 | 3557 | 15 | ||
| Belgium | 3401 | 75 | 263 | 3063 | 288 | ||
| Norway | 2385 | 7 | 6 | 2372 | 28 | ||
| Sweden | 1934 | 21 | 16 | 1897 | 76 | ||
| Australia | 1629 | 20 | 7 | 88 | 1534 | 11 | |
| Portugal | 1600 | 14 | 5 | 1581 | 26 | ||
| Brazil | 1546 | 25 | 2 | 1519 | 18 | ||
| Canada | 1470 | 20 | 14 | 1436 | 1 | ||
| Denmark | 1395 | 13 | 1 | 1381 | 42 | ||
| Malaysia | 1306 | 10 | 139 | 1157 | 26 | ||
| Turkey | 1236 | 30 | 1206 | ||||
| Czechia | 1120 | 1 | 6 | 1113 | 19 | ||
| Japan | 1101 | 41 | 235 | 825 | 49 | ||
| Israel | 1071 | 1 | 37 | 1033 | 18 | ||
| Ireland | 906 | 4 | 5 | 897 | 29 | ||
| Luxembourg | 798 | 8 | 6 | 784 | 3 | ||
| Ecuador | 789 | 14 | 3 | 772 | 2 | ||
| Pakistan | 776 | 5 | 13 | 758 | |||
| Diamond Princess | 712 | 8 | 567 | 137 | 15 | ||
| Poland | 634 | 7 | 13 | 614 | 3 | ||
| Chile | 632 | 1 | 8 | 623 | 7 | ||
| Finland | 626 | 1 | 10 | 615 | 12 | ||
| Greece | 624 | 15 | 19 | 590 | 18 | ||
| Thailand | 599 | 1 | 44 | 554 | 7 | ||
| Iceland | 568 | 1 | 5 | 562 | 1 | ||
| Indonesia | 514 | 48 | 29 | 437 | |||
| Saudi Arabia | 511 | 17 | 494 | ||||
| Qatar | 494 | 33 | 461 | 6 | |||
| Singapore | 455 | 2 | 144 | 309 | 14 | ||
| Romania | 433 | 3 | 64 | 366 | 14 | ||
| Slovenia | 414 | 2 | 412 | 12 | |||
| India | 396 | 7 | 24 | 365 | |||
| Philippines | 380 | 25 | 15 | 340 | 1 | ||
| Russia | 367 | 1 | 16 | 350 | |||
| Peru | 363 | 5 | 1 | 357 | 5 | ||
| Bahrain | 334 | 2 | 149 | 183 | 3 | ||
| Egypt | 327 | 14 | 56 | 257 | |||
| Estonia | 326 | 4 | 322 | 2 | |||
| Hong Kong | 318 | 4 | 100 | 214 | 4 | ||
| Panama | 313 | 3 | 1 | 309 | 7 | ||
| South Africa | 274 | 2 | 272 | ||||
| Argentina | 266 | 4 | 27 | 235 | |||
| Croatia | 254 | 1 | 5 | 248 | 5 | ||
| Mexico | 251 | 2 | 4 | 245 | 1 | ||
| Lebanon | 248 | 4 | 8 | 236 | 4 | ||
| Iraq | 233 | 20 | 57 | 156 | |||
| Colombia | 231 | 2 | 3 | 226 | |||
| Serbia | 222 | 2 | 2 | 218 | 4 | ||
| Dominican Republic | 202 | 3 | 199 | ||||
| Algeria | 201 | 17 | 65 | 119 | |||
| Armenia | 194 | 2 | 192 | 6 | |||
| Kuwait | 188 | 30 | 158 | 5 | |||
| Bulgaria | 187 | 3 | 3 | 181 | 3 | ||
| Slovakia | 185 | 7 | 178 | 2 | |||
| San Marino | 175 | 20 | 4 | 151 | 13 | ||
| Taiwan | 169 | 2 | 28 | 139 | |||
| Uruguay | 158 | 158 | 2 | ||||
| UAE | 153 | 2 | 38 | 113 | 2 | ||
| Lithuania | 143 | 1 | 1 | 141 | 1 | ||
| Latvia | 139 | 1 | 138 | ||||
| Costa Rica | 134 | 2 | 2 | 130 | 2 | ||
| Hungary | 131 | 6 | 16 | 109 | 6 | ||
| Bosnia and Herzegovina | 126 | 1 | 2 | 123 | 1 | ||
| Morocco | 115 | 4 | 3 | 108 | 1 | ||
| North Macedonia | 115 | 1 | 1 | 113 | 1 | ||
| Faeroe Islands | 115 | 3 | 112 | ||||
| Andorra | 113 | 1 | 1 | 111 | 2 | ||
| Vietnam | 113 | 17 | 96 | 2 | |||
| Jordan | 112 | 1 | 111 | ||||
| New Zealand | 102 | 102 | |||||
| Cyprus | 95 | 1 | 3 | 91 | 3 | ||
| Moldova | 94 | 1 | 1 | 92 | 3 | ||
| Malta | 90 | 2 | 88 | 1 | |||
| Albania | 89 | 2 | 2 | 85 | 2 | ||
| Brunei | 88 | 2 | 86 | 2 | |||
| Cambodia | 84 | 2 | 82 | ||||
| Sri Lanka | 82 | 3 | 79 | 2 | |||
| Belarus | 76 | 15 | 61 | ||||
| Burkina Faso | 75 | 4 | 5 | 66 | |||
| Tunisia | 75 | 3 | 1 | 71 | 7 | ||
| Ukraine | 73 | 3 | 1 | 69 | |||
| Venezuela | 70 | 15 | 55 | 2 | |||
| Senegal | 67 | 5 | 62 | ||||
| Azerbaijan | 65 | 1 | 11 | 53 | |||
| Réunion | 64 | 1 | 63 | ||||
| Kazakhstan | 60 | 60 | |||||
| Palestine | 59 | 17 | 42 | ||||
| Guadeloupe | 58 | 1 | 57 | 4 | |||
| Oman | 55 | 17 | 38 | ||||
| Georgia | 54 | 1 | 53 | 1 | |||
| Trinidad and Tobago | 50 | 50 | |||||
| Martinique | 44 | 1 | 43 | 7 | |||
| Uzbekistan | 43 | 43 | |||||
| Afghanistan | 40 | 1 | 1 | 38 | |||
| Cameroon | 40 | 2 | 38 | ||||
| Liechtenstein | 37 | 37 | |||||
| Cuba | 35 | 1 | 34 | ||||
| Channel Islands | 32 | 32 | |||||
| DRC | 30 | 1 | 29 | ||||
| Nigeria | 30 | 2 | 28 | ||||
| Mauritius | 28 | 2 | 26 | 1 | |||
| Bangladesh | 27 | 2 | 3 | 22 | |||
| Guam | 27 | 1 | 26 | ||||
| Honduras | 26 | 26 | |||||
| Bolivia | 24 | 24 | |||||
| Ghana | 23 | 1 | 22 | ||||
| Puerto Rico | 23 | 1 | 22 | ||||
| Monaco | 23 | 1 | 22 | ||||
| Paraguay | 22 | 1 | 21 | 1 | |||
| Macao | 22 | 10 | 12 | ||||
| Montenegro | 21 | 21 | |||||
| Guatemala | 19 | 1 | 18 | ||||
| Guyana | 19 | 1 | 18 | ||||
| Jamaica | 19 | 1 | 2 | 16 | |||
| Rwanda | 19 | 19 | |||||
| French Guiana | 18 | 18 | |||||
| French Polynesia | 18 | 18 | |||||
| Togo | 16 | 16 | |||||
| Gibraltar | 15 | 2 | 13 | ||||
| Kenya | 15 | 15 | |||||
| Barbados | 14 | 14 | |||||
| Ivory Coast | 14 | 1 | 13 | ||||
| Kyrgyzstan | 14 | 14 | |||||
| Maldives | 13 | 3 | 10 | ||||
| Tanzania | 12 | 12 | |||||
| Ethiopia | 11 | 11 | |||||
| Mayotte | 11 | 11 | |||||
| Mongolia | 10 | 10 | |||||
| Aruba | 9 | 1 | 8 | ||||
| Seychelles | 7 | 7 | |||||
| Bermuda | 6 | 6 | |||||
| Equatorial Guinea | 6 | 6 | |||||
| U.S. Virgin Islands | 6 | 6 | |||||
| Gabon | 5 | 1 | 4 | ||||
| Isle of Man | 5 | 5 | |||||
| Saint Martin | 5 | 5 | |||||
| Suriname | 5 | 5 | |||||
| Bahamas | 4 | 4 | |||||
| Greenland | 4 | 4 | |||||
| New Caledonia | 4 | 4 | |||||
| Eswatini | 4 | 4 | |||||
| Cayman Islands | 3 | 1 | 2 | ||||
| Curaçao | 3 | 1 | 2 | ||||
| Cabo Verde | 3 | 3 | |||||
| CAR | 3 | 3 | |||||
| Congo | 3 | 3 | |||||
| El Salvador | 3 | 3 | |||||
| Liberia | 3 | 3 | |||||
| Madagascar | 3 | 3 | |||||
| Namibia | 3 | 3 | |||||
| St. Barth | 3 | 3 | |||||
| Zambia | 3 | 3 | |||||
| Zimbabwe | 3 | 3 | |||||
| Sudan | 2 | 1 | 1 | ||||
| Angola | 2 | 2 | |||||
| Benin | 2 | 2 | |||||
| Bhutan | 2 | 2 | |||||
| Fiji | 2 | 2 | |||||
| Guinea | 2 | 2 | |||||
| Haiti | 2 | 2 | |||||
| Mauritania | 2 | 2 | |||||
| Nicaragua | 2 | 2 | |||||
| Niger | 2 | 2 | |||||
| Saint Lucia | 2 | 2 | |||||
| Nepal | 1 | 1 | 0 | ||||
| Antigua and Barbuda | 1 | 1 | |||||
| Chad | 1 | 1 | |||||
| Djibouti | 1 | 1 | |||||
| Dominica | 1 | 1 | |||||
| Eritrea | 1 | 1 | |||||
| Gambia | 1 | 1 | |||||
| Grenada | 1 | 1 | |||||
| Vatican City | 1 | 1 | |||||
| Montserrat | 1 | 1 | |||||
| Mozambique | 1 | 1 | |||||
| Papua New Guinea | 1 | 1 | |||||
| St. Vincent Grenadines | 1 | 1 | |||||
| Sint Maarten | 1 | 1 | |||||
| Somalia | 1 | 1 | |||||
| Syria | 1 | 1 | |||||
| Timor-Leste | 1 | 1 | |||||
| Uganda | 1 | 1 | |||||
| Total: | 337553 | 123 | 14654 | 16 | 98884 | 224015 | 10553 |