In the morning at 8.53 a.m, SGX Nifty is positive on the hope of US package to be announced to support the growth of the USA economy. The package size is $2 trillion. Also there is hope that Indian government is also planning to give an economy package of Rs 1.5 lakh crore in near future.
In order to find the strength of this rally. We have made a comparison by analyzing corona virus cases from yesterday and found that cases are increasing at a much faster pace. This is showing a bad picture for the world at large. This market can deceive you on the upside and chances of going up is still low. So we recommend you to build your long term portfolio in a systematic manner.
The total cases now stands at 471060 an increase of 11.4% from the previous day. This is alarming as world is under the threat of health care collapse as well as economical deterioration due this issue. Sooner or later we have to control this problem otherwise the world economy will enter into recession.
The major cases are reported in Italy, USA, Spain, France and Iran. Here the cases have increased at high pace and putting the stain on healthcare services. Have a look on charts:
What should be trading strategy for the day?
It is better not to trade long on the opening, as Nifty pre-opening session is showing better result than SGX Nifty. So chances of coming down is high due to this. In our opinion, today the best strategy is “Buy on Dip” on any strength from lower level.
Also bear in mind this is a bear market rally. So any time the rally can fizzle out as the corona virus cases are increasing around the world.