Part of Newsletter sent on 19 March 2020

Global Stock Indices

On Tuesday, we went long in S&P500 at 2360 with S/L 2320. Booked profit in a long position at 2515.

Yesterday, we went long in S&P500 at US opening (around 2360) for target 2500-2600. Today, the market should move up even if opening is at lower levels. Recovery is possible from lower levels. By Friday or next Monday, S&P500 can bounce back to 2700. Trend seems to be positive for Friday as well as next Monday-Tuesday.

You can buy blue-chip index stocks such as AMAZON, NETFLIX, MICROSOFT, FACEBOOK, CISCO. In the next week, Mars is changing position (on 22nd March 2020) while Rahu is changing navmansha (will conjunct with Jupiter). On 28th, Venus will enter Taurus. On 29th, Jupiter will enter Capricorn. The market will gradually start to improve. This extreme volatility may reduce to some extent by next week. After 1st April 2020, it’ll turn towards a positive trend. From 14th April, the market will enter bullish phase. The effect of coronavirus shall subdue by the first or second week of April 2020. There are two reasons behind this – 1) Rahu will move away from Adra nakshatra & 2) Saturn will change navmansha on 14th April. The effect may be visible a week earlier as well. The fear of coronavirus may reduce. For 2-3 months, market will enter a positive zone.

This is not the time to panic for investors. Buy value stocks at a huge discount in this catastrophe. In the near term, it’ll prove to be reasonably profitable.

In Annual Letter 2019, we clearly mentioned that 2020 will be a revisit to the recession of 2008. Right now, we are going through the worst phase for the equity market.

In the previous session, S&P500 made a low of 2260 and bounced back to 2459 while DOW made a low of 18800 and bounced back to 20389. NASDAQ breached 6900 and bounced back to 7400.

Today, fast recovery is possible in American market. By Tuesday, positive signal is possible wherein S&P500 may close above 2700. From the first week of April, a major trend change will be observed. This may continue till third week of June 2020.

S&P500 has support at 2200 (closing basis). We will see a fast recovery towards 2800.

Positional traders can buy 50% blue-chip stocks (such as TESLA, AMAZON, NETFLIX, MICROSOFT, FACEBOOK, CISCO, APPLE) here along with TESLA for 2-3 months in cash. You can buy 50% metal stock as well as energy stocks (25%). By April-end, a significant up-move is possible in energy stocks. Weekly closing is expected to be positive.

You can make 50% long in European indices today and rest around the first week of April 2020.

You can also buy RUSSELL @ 980-1000.

Indian Stock Market

In the previous session, Indian market saw Nifty at low of 8400 and Bank Nifty at low of 20150. Today, when the market opens, buy large-cap stocks (such as SBI, RELIANCE INDUSTRIES, HDFC, ITC) in CASH/DELIVERY from a medium-term perspective. You can also buy a small quantity of Nifty and Bank Nifty / Call Options at lower levels and hold for next week. A considerable gain is possible. The first half of next week may behave positively. The second half will have considerable volatility. From the first week of April 2020, the market will move towards an uptrend. After 14th April, it’ll enter a positive phase for 2-3 months.  In next week, Nifty may cross 9000.

It should be noted that investors who had the courage to buy stocks in the recession of 2008 made a fortune. This is a similar opportunity for investment and not gambling.

As per astrology, today should be the last day for bearish trend. Market may open lower. It will start to recover from 10.30 to 11.15 HRS, uptrend is indicated. From 11.15 to 14.30 HRS, it’ll trade volatile. From 14.30 to 15.30 HRS, short covering is possible.

It is advised to long 50% Nifty at lower level with S/L 8000 (closing basis) and 50% Bank Nifty at lower level with S/L 20000 (closing basis).

By next week, Nifty may cross 9000 while Bank Nifty may cross 24000.

Positional traders can buy 50% high-quality stocks (such as ITC, JUBILANT FOOD, SBI, HDFC, BAJAJ FINANCE, TATA STEEL, JSPL, HINDALCO, UPL, AVANTI FEED, HDFC BANK, RELIANCE INDUSTRIES, GRASIM, ACC) today in cash for a perspective of three months.

DISCLAIMER: The above information is meant for educational purposes.