Stock Market Outlook: No stimulus package in US, says Trump; Anil Singhvi decodes impact, unveils this strategy

Stock Market Outlook: After a huge selloff in the US markets post-Donald Trump saying he will not deliver a stimulus package before the election is over, the impact on global markets including Dalal Street has been severe since early morning. Interpreting the move by US President Trump for investors, Zee Business Managing Editor Anil Singhvi said that there is more politics than economics in Trump's remark on US stimulus package. The Market Guru said that markets will soon recover from this selloff and one should be ready for such volatility till US Presidential Polls are over. He suggested that stock market investors and traders should avoid keeping any overnight positions.

Further decoding Donald Trump's statement on US stimulus package, Anil Singhvi said, "Donald Trump's statement on stimulus package halt has to be seen more from the political angle than from any economic angle. Trump, who is a US Presidential candidate too, has tried to score points over his rivals by showcasing his helplessness in bringing the stimulus package as he needs support of the opposition parties to bring the 4th tranche of the US stimulus package. That's why he said that the US stimulus package will come after the US Presidential Elections and sent a message to the US voters that he is interested in another tranche of stimulus package but it is possible only when he has full numbers in both houses."

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On US stimulus package halt impact on the global markets, the Market Guru said, "Donald Trump's statement on US stimulus package has done whatever damage it was capable of doing to the global markets, now the markets will recover. I have been maintaining that the market sentiment is strong even without the US stimulus package. In fact, had there been no US Presidential Polls, the fundamentals and technical of the current markets are enough to drive NSE Nifty up to 12,000 levels. But, due to the US President Elections, market is expected to remain volatile and profit-booking on every such trigger will continue in the entire month of October."

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US में अभी स्टिमुलस पैकेज नहीं !

अनिल सिंघवी- अक्टूबर में जारी रहेगा उतार-चढ़ाव… US में राहत पैकेज पर सिर्फ राजनीति... बाजार पर जरूरत से ज्यादा असर नहीं...#EditorsTake #USElection2020 #StimulusPackage @AnilSinghvi_ pic.twitter.com/kRFATBrq6I

— Zee Business (@ZeeBusiness) October 7, 2020

Unveiling the money-making trade strategy in this highly volatile phase, Singhvi said, "One should avoid overnight positions because entire global markets is following the US stock market and no one knows for what reason there will be weakness or strong positive sentiment. It's better to trade based on facts than on hope."