Nasdaq is on fire and close at 10000 level, Federal Reserve keeps interest rate at around 0%.

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Key Highlights reasons for Surged Nasdaq

  • Nasdaq closed new highs- a story of V-Shape recovery from its low recorded on 23 March 2020
  • Federal Reserve expecting a contraction 6.5% in 2020 and 5% expansion in 2021. Keeps interest rate near 0% to support economical activities.
  • A sudden spike in corona virus cases in Texas can result in second wave of infection.
  • Mix closing of US markets on the back of weak economical recovery.
  • Most of the Asian markets are trading with negative biased.
  • SGX Nifty in negative territory.

Nasdaq

Why Federal Reserve Keeps interest rate near 0% ?

  • Federal Reserve is expecting a contraction of 6.5% in the US economy in 2020 before recovering to 5% in 2021. Also keeps interest rate to near 0% to support the economical activities.
  • The key risk to U.S. economy is too fast opening can result in second wave of infection. Texas has seen a sudden rise in hospitalization in corona virus cases in last three days. It is among the states that has opened the economy too fast.
  • Nasdaq has seen remarkable recovery from its low on the back of re-opened economical activities in U.S. Investors have seen V-Shape recovery and start of new uptrend.
  • Yesterday after U.S. Federal Reserve announcement about U.S. economy outlook, Dow Jones and S&P closed in red territory.

US Markets

  • Dow Jones Industrial Average decreased by 282.31 points, or -1.04%, close at 26,989.99.
  • The S&P 500 fallen by 17.04 points, or -0.53%, ends at 3,109.14.
  • Nasdaq Composite Index increased by 66.59 points, or 0.67%, close at 10,020.35.

Asian Markets This Morning

IndicesCurrent ValuePrev. Close% Change
Nikkei 22522882.2823124.95-1.05%
Straits Times2750.262800.57-1.80%
Hang Seng  24956.2625049.73-0.37%
Taiwan Weighted11717.7111720.16 0.04%
Kospi2,192.612195.69-0.14%
Jakarta Composite4,912.094920.68-0.17%
Shanghai Composite2939.022943.75-0.16%
SGX Nifty 10092.0010111.50-0.19%
Time of data collection: 7:49 A.M

Nifty Outlook

  • SGX Nifty is suggesting that Indian Markets will start at around 10,100 level. Nifty is in range bound from last few days and trading in the zone of 9900-10300. Instead of Nifty we are suggesting to trade in stocks.
  1. Buy IBULHSGFIN: Target Rs 180 and Stop loss Rs 143.
  2. Buy UJJIVAN: Target Rs 235 and Stop loss Rs 190
  3. Buy SPARC: Target Rs 170 and Stop loss Rs 145
  4. Buy TATAELXI: Target Rs 950 and Stop loss Rs 830

Have a look on You Tube Video

For long term portfolio, Read this article.

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