Pre market analysis - 03 July 2020. Nifty where is it headed now?

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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Premarket analysis: 03 July 2020


  • Global market mood has turned positive on better economic data

  • Emerging market assets are breaking out of range

  • FIIs reduced their net sell position yesterday


  • India- China border situation is dragging on

  • Virus is still out of control although markets are temporarily ignoring the negatives.

Global Markets: -Positive

US market ended in green within consolidation range while European markets rose more than 2.5% and are breaking out of range. The emerging market equity EFT and currency ETF traded in US broke out of range yesterday. Other risk assets such as high yield bonds rose as well.

Gold, Dollar index and Japanese yen moved sideways. Gold is still holding on to its gain. Volatility index is further cooling off and trending towards long term average.

Upbeat US jobs data, Global manufacturing and economic data seems to have created a positive mood in the markets.

ASIAN Markets this morning: - Green

Asian markets started the day strongly in green. Some of the markets are retracing the gains currently. Asian markets apart from Japanese Nikkei are breaking out of range. Nikkei had already run up quite a bit along with other developed markets and it is currently consolidating at higher levels. SGX Nifty is trading about 50 points higher compared to yesterday’s futures’ close at NSE. Indian Rupee is trading in positive territory in overseas market this morning on top of yesterday’s sharp spike

European and US futures are trading flat this morning in Asia session.

Calendar Events:

Forex reserve position and Bank deposit, lending data will be released today after market close.

India : -Breakout

Local economic data as well as positive global mood contributed to break out of Nifty above 10500 yesterday. FIIs sold less than the previous sessions in cash market while DIIs continued to buy.

Where is Nifty headed today. Find out here

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Nifty sustained well above 10500

Snap from premarket blog:

"…Positive momentum in Nifty is likely to continue…

Nifty having broken out of 10500 decisively, is most likely to move towards 10720. A good support exists at 10200…)