Mood swings in global market. Will Nifty have mood swing as well?

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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  • Sharp raise in equity indices and all asset classes this morning with no specific reason

  • DIIs continued to defend the markets with inflow yesterday


  • Markets may be turning volatile with sharp up and down moves

  • FIIs sold heavily yesterday

Global Markets: Sharp up move

Both US and European markets were nervous and traded with negative bias yesterday. However, this morning in Asia session all asset classes are sharply up. There seems to no major news other than US federal starting to implement a bond buying program that was already announced. All risk asset classes are up while US dollar is down. European and US session that starts in the afternoon-India time will offer hint about whether bullish mood in global markets is sustainable or markets are getting volatile.

ASIAN Markets this morning: - All clear and positive

Asian markets are sharply up as well. This is in contrast to the nervousness and negative bias markets displayed yesterday. MSCI Asia pacific index is up more than 2.50% in the Morning and SGX nifty currently up more than 200 points and it is trading above psychological market of 10K

Calendar events

Wholesale inflation numbers will be released yesterday came in below expectations. This is raising expectations of more rate cuts from RBI. The import and export data pointed to continued contraction in the economy. Therefore, the economic fundamentals remain week and has no co relation with market movement.

India : Raising tide lifts all boat?

Global markets mood has always been the driving force behind the Nifty movement for some time. The sudden bullishness displayed in the global markets today will have a positive impact on the Nifty opening today. However, FIIs had sold heavily in the last two sessions while DIIs continued to buy the dips and offered support at lower levels.

Will the sudden and surprise bullishness help a sustained up-move in Nifty? Find ourhere

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.

Mid-Day update

It had a few jitters just now

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EOD update: Although #IndiaChinaFaceOff caused huge volatility, Nifty settled at 9900.

Snap from premarket blog: “…I expect market to open in positive territory trade above 9900… only FIIs support… can only take Nifty above 10200.”