Indian Markets have surged in last three days from its low of 7500 on Wednesday. A gain of more than 15% on Thursday, after Nifty closing at 8641 level.
NIFTY TECHNICAL CHART
All credit goes to the Global markets, as they have shown the similar pattern. Yesterday, Dow Jones the US indices has closed at 22552.15. It has grown at 23.82% from its low of 18213.65 on Monday. Ignoring the number of corona Virus cases in the country.
DOW JONES INDUSTRIAL AVERAGE – US MARKET INDICES
Why markets are going up in this difficult scenario?
All policy makers around the world are coming with economic packages to support their economies. Few packages that have been already announced or going to announce are highlighted below:
- G-20 commits $5 trillion package to support the world economy in this tough environment to fight against Corona Virus impact.
- IMF made available $50 billion to world economy to support economic growth.
- US is planning to come out with the economic package of $2 trillion.
- Yesterday, India announces $ 22.5 billion package to support the Indian economy.
- Most of the countries like Japan, Russia, Australia and European Nation, have come out with the economical package.
What it means for Markets?
These packages are fueling the growth of the markets. That is why in last 3-4 days, markets are rising. In near future, the markets can surge further and provide some respite the way they were falling.
Is worst behind us and for the markets?
In our opinion, this is temporary rise and markets can fizzle out any time. The way corona virus cases increasing will put pressure on the growth of world economies and lead it to recession. Traders should be cautious while taking long position in the market.
What should be trading strategy for Indian Markets?
Today, Indian markets will open with a positive start. Trade should be on long side as all the global markets are positive. At 10 a.m, RBI governor is going to announce certain steps that will spur the economic activities. This will going to have a positive start. One can expect a target of 9000 level today itself..