Let’s explore the reason for surging Stocks on Asian Markets.
- Covid-19 rising cases worldwide has been reason for fall in US major indices like Dow and S&P 500 indices.
- Few US states have seen a record surge in number of deaths due to covid-19 issue.
- Asian markets too are seeing sudden rise in the cases.
- Better than US Jobless data has failed to lift US markets sentiments.
- Asian markets are trading with red biased this morning. (7:45 A.M)
- SGX Nifty is in red note this morning. (7:45 A.M.)
Why Asian Markets are trading in red?
- Covid-19 is again in spotlight as cases are rising fast worldwide making investors jittery on global economical recovery. As many countries are restricting again the economical activities.
- 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. t
- 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.
- The positive news is many companies are working to find corona vaccine and some have shown positive results. Any time good news can hit the market and next bull run will start.
- Our suggestion is remain buyer to these markets and use buy on dip strategy.
- Dow Jones Industrial Average fallen by 361.19 points, or 1.39%, close at 25,706.09.
- The S&P 500 decreased by 17.89 points, or 0.56%, ends at 3,152.05.
- Nasdaq Composite Index hit new high and gained by 55.25 points, or 0.53%, close at 10,547.25.
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Asian Markets In Morning
|Indices||Current Value||Prev. Close||% Change|
Nifty 50 outlook for the day.
- SGX Nifty is suggesting that Indian Markets will start at around 10800 level. Today strategy is to wait for significant fall in Nifty Future and accumulate it at lower level for next week. You will get an upside at 10850 level and maintain stop loss at 10650. Best thing is to Buy near stop loss.
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Author: Akhil Mahajan, M.D. Mutual Fund Advisory, www.mutualfundadvisory.co.in,