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: 08 July 2020
Positives:
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Emerging markets rally is intact
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FIIs bought in cash market & are net long in F&O
Negatives:
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Surging virus infections
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Low expectations on quarterly earnings
Global Markets: -Sideways
US and European markets ended in red. They were unable to break out of the consolidation range. Risk assets are such as emerging market ETFs, high yield bonds are doing better. Yesterday they mostly consolidated in sideways market. Industrial metals continue to rally on the back of strong performance of Chinese stocks. Gold is up again. Japanese yen and dollar coiled sideways. US Volatility index paused on its downward trend.
ASIAN Markets this morning: - Mixed
Most of the Asian markets opened slightly in red and are in sideways curl since then. European and US futures are trading flat as well in Asian session. SGX Nifty is trading about 20 points above Nifty futures’ close yesterday.
Calendar Events:
Cabinet meeting is scheduled by 10.30 AM today which I assume is likely to discuss and take decisions on economic issues.
India : -Will it go any further?
FIIs have turned net buyers in cash market and continue to hold net long position in index derivatives for second day. Large proprietary traders were also net long in index derivatives. DIIs booked some profit yesterday. Optimism in the markets seems to be intact.
How will Nifty perform today? Lets find out here