This is the excerpts from my morning market view that is posted early in the morning in my blog. This is not a prediction or trading tip. This is an analysis of premarket macro narrative.
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FED met the market expectations and remained dovish
Dollar Index accelerating in its fall
Emerging market currency index continued to go higher
DIIs profit booking stopped
S&P maintained the credit rating at lowest investment grade
US & European markets ended lower
FII net sold in cash market first time in many days
Global Markets: Profit booking
US markets were down in spite of dovish Fed decision and message. European markets also ended lower yesterday. The European and US futures are down this morning in the Asia trading session. Federal Reserve committed to keep print money, keep rates close to zero, was down beat on economic forecast. This is what markets expected. There is also a possibility that markets are of the view that there are no more near-term trigger for the markets to continue upward. Therefore, the down move is probably due to profit booking taking advantage of favorable news from Fed.
Emerging market currencies and industrial metals continued to go up while dollar index is accelerating in its fall. Gold is up due to dollar weakness. US High yield bond index fell in line with stocks. Bonds values are raising.
ASIAN Markets this morning: - Mostly Negative
Asian markets are trading mostly in negative territory as profit booking in the developed markets subdued the sentiments in emerging markets as well. SGX Nifty is trading flat compared to yesterday’s Nifty close.
FED policy decision was in line with market expectations. Fed committed to keep printing money as long as the joblessness comes down to comfortable level.
India : What about Nifty?
The Indian markets were the beneficiary of the risk rally in the global markets. These developed global markets are now entering profit booking phase. We are aware that there are no positive local triggers in India for the economy or markets. A small positive is that global rating agency S&P maintained India’s credit rating at lowest investment grade. Now both Moody’s and S&P carry similar level of rating for India.
What are the possibilities for Nifty and how technically it is biased. Click HERE to find out
Disclaimer: Author is not responsible or liable, directly or indirectly, for any form of damages whatsoever resulting from the use (or misuse) of information contained in or implied by this posting. This should not be relied on as a source of financial, investment or trading advice. What works for one individual may not work for anyone else. Always consult and check with your financial advisor. I am an active trader therefore I have conflict of interest with whatever I have mentioned here.