Indian Markets are set for lower opening after record oil price erosion in U.S. Markets

For Indian Markets, Yesterday was a historic session for West Texas Intermediate (WTI) May future contract. For the first time in its history, the prices have closed in negative territory at -$37.63 a barrel.

This is on the back of over supply of oil due to stand still economies around the world and low storage capacity available with the producers. This means that suppliers are paying buyers $37.63 to buy oil.

This has resulted in the fall of stock prices in U.S. Markets on Monday session:

  • Dow Jones Industrial Average tumbled by 592.05 points or -2.4% to settled at 23650.44
  • S&P 500 lost 51.40 points or -1.8% to close at 2823.16.
  • Nasdaq composite close at 8560.73. This means a fall of 89.41 points or -1.2%

Another reason of fall in the market is delay in the agreement between The White house and congressional Democrats on a deal of $ 450 billion economical package for refilling the depleted emergency fund for corona virus testing & to support small businesses. This comes after Senate Majority Leader Mitch McConnell saying to discuss the program again on Tuesday.

Asian Market Picture this Morning

IndicesCurrent ValuePrev. Close% Change
Nikkei (Apr 21)19358.7719669.12-1.58%
Straits Times (Apr 21)2579.252597.85-0.72%
Hang Seng  (Apr 21)23705.8324330.02-2.57%
Kospi (Apr 21)1847.621898.36-2.67%
Jakarta Composite (Apr 21)4508.024575.91-1.48%
SGX Nifty (Apr 21)90579257-2.16%
Data: Money Control, Time: 8.20 A.M.

How to Trade this Morning?

Today strategy is to short the Indian Market through Nifty Future. The best thing is to wait for some upside may be at 9100- 9120 level and look for Nifty future target of 9000. Do not forgot to put stop loss at 9200 level. The reason why we have turned negative:

  • Today SGX Nifty is indicating that Nifty will open below 9090 level. This is crucial level as Nifty has hit a low of 9090 on 17th April 2020 and from here it has hit 9400 level on Monday.
  • Going down 9090 level will mean that the probability of going down has increased as this will open a bearish sentiment for our markets.

You can also trade with April series Nifty Put at 9000 strike price too but do not buy the put on opening of the market. wait for some upside and then buy it.

Read: Are you confused with the Selection of Nifty 50 stocks for your portfolio? A Ready Guide for you.

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