Nifty: Sideways chop or range break out?

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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Nifty: Sideways chop or range break out?

Premarket analysis: 30 June 2020

Positives:

  • Global markets went up but stayed within consolidation zone

  • DIIs continued to absorb profit booking by FIIs

Negatives:

  • WHO says worst is yet to come for Virus infections

  • Blackrock downgraded emerging market equities to underweight

  • India China border tension is spreading to trade and commerce

Global Markets: -Sideways coil

US and European markets recovered yesterday from lows of the consolidation range. The High yield bonds and emerging market currencies fell yesterday while emerging market equity ETFs traded in US was mostly flat. Safe haven assets Gold continued to raise while Japanese Yen fell and dollar index were flat.

Global asset manager and hedge fund Black rock downgraded emerging markets to underweight because EM governments do not have much room to spend more to lift economy out of recession.

ASIAN Markets this morning: - Slightly up

Most of the Asian markets are up this morning but they are still within the consolidation range. European and US futures are trading flat in the Asian trading session. SGX Nifty is trading about 50 points above the Nifty future’s yesterday close and almost flat comparted to Nifty spot close

Calendar Events:

Fiscal deficit, infrastructure output and India’s external debt numbers will be released today. Prime Minister will also be addressing the country by 4.00PM today.

India : -Still on sideways coil

Blackrock downgrading emerging market equities and FIIs’ continues selling in cash market are negative for Indian markets. Border tension between India and China is beginning to affect trade and commercial relationship. India is staring to ban / restrict Chinese products, services, and software. China may start retaliating soon. However positive global mood today may help the markets.

How will Nifty perform today? Lets find our here

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.

Market ended flat after sideways coiling

Snap from premarket blog:

“…The market seems to have support at around 10180 and resistance at around 10420…As of now there are no triggers for the nifty to break the range…”