Dovish Fed but markets are down. What about Nifty?

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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.

Click HERE to view details. Be in touch on TWITTER for regular intraday updates

Positives:

  • 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

Negatives:

  • 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.

Calendar events

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.

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Mid-Day Update:

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Update:

“…there are no reason for Nifty to go below 9950/9000. ….Pull backs may be used to enter in to a bullish spread”

  1. Nifty closed above 9900 :neutral_face: BUT seems bearish :-1:

  2. Today is not a day to go long on swing trade :-1:

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Lol. I can’t help hard ignoring you. It’s like getting wiser after looking at post market charts.

Seems bearish! come on,you can be better. A child can know by the red color that today market plunge.

Please, rub in with good spirits.

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Celina, he is just sharing his views, if you don’t like then ignore but don’t discourage anybody for what they are doing.

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Okey. Not discouraging, but giving light critic. Everyone needs critic. Sure he must be a grown man to take some critics and light humor. Right?

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@Celina
Good… but tell me what else i have mentioned in my blog and in my twitter

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Hi @TraderVenk

You are targeting the markets need for option strategies by giving extensive research. Correct? It is a Niche that many are trying to carve, thanks to SEBI, NSE and Trading platforms.

Insights are dime a dozen, with all the experts in the market. The skill in creating the narrative to reach the insights is what newbies like me need.
What I liked the most is your tenacity to do research daily and update the blog every day from 23rd Apr. Disciplined Writer…

One request : If you can break the blogs into two. Like an abstract, then full explanation it can help both scanners like me, and indepth readers out there.

Lot of information on your blog, with clear pictures made me think, how are you managing your time? Blogging is like carving a statue from an image in mind. It takes effort and creativity. Share your ideas on gathering more data in lesser time.

Keep up the good work. Happy writing.

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Thanks @Qrious_Kamal

Writing down the market narrative has been part of my regular morning routine for few years now. That is part of my trading process. These blogs are basically structured writing of my morning research I do for my own trading. This about what happened in global markets overnight after Nifty closed and what happened in other asset classes (also called as inter-market analysis. … this is very important to find out anomalies and divergences)

I will try to make the blog more understandable with more explanations. But as you have mentioned the time is constraint in the morning.

But will definitely try.

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Heyyy. I know that you are shamelessly trying to make me follow you. But, that’s not happening, until you come in my recommendations or you get half a mil followers.

But the bright side is everybody starts with 0 followers. I know your agenda, the playground is big, keep playing. Maybe my chat with you may have increase your traffic.

Thank me silently if you can’t thank me loudly.

For the record ,I am not in the furus stuff. So, I declined your request for following you. But I have given you some significance. Fair enough, weatherman.

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Ha…haa… Good Joke :rofl:

You are after my TQNA post, twitter and my blog…

I wont be surprised if you track me down and show up in my private traders’ chat room… or even at my door step one day

World is big @Celina … go explore Don’t just keeping bugging me

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Ewww…creepy. Sounds so desperate for significance. That’s it, I don’t know what I dragged myself into. But this is it. I made a mistake responding to this thread.

Talk about growing big. What a joke! I gave you a genuine motivation. Everyone starts with 0 followers. But you ll end with 0 followers. Lol.

You reek of narcissism. Most small people always do. BYE.

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You are back again :joy: … what can I say…

Your every reply shows your anger, frustration. I tried to be a friendly fellow trader

Sorry… that did not work… I will ignore your replies and NO MORE responses :pray:

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