Tit - bits

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Indian domestic bourses slumped on Tuesday, mirroring weak global shares after the historic overnight plunge in U.S. crude oil to below zero. This highlighted the economic damage caused by the coronavirus-led lockdowns. The barometer S&P BSE Sensex crashed by 1,011.29 points or 3.20% to 30,636.71.

The Nifty 50 index lost 280.40 points or 3.03% to end the day at 8,981.45. 

Banks shares witnessed major selling pressure, after several reports spoke that severe downturn and resultant job losses on account of the lockdown could lead to fall in consumer lending and a jump in bad loans for public and private  lenders. 

In my last post I recommended a buy on  State Bank of India at Rs.188 -- both the targets have been achieved. Congratulations to all who made money. 

Shares of IT companies also saw declines  after US President Donald Trump temporarily suspended all immigration into United States. 

Back home, a rapidly rising number of Covid-19 cases in India and the resultant deaths also put pressure on the bourses. 

In the broader market, the S&P BSE Mid-Cap index fell 2.73% while the S&P BSE Small-Cap index slipped 2.96%.

I feel this is the end of short term rally and you should book out profits and exit from the market, as plunging of oil prices could make some of the Gulf countries go bankrupt. 

We have sold all our open positions except Nifty shorts, which we holding with targets of 8800/8200/7700. This time the Nifty spot could break 6000 mark. We are sitting with cash.