Pre Market Analysis 16 July. Will profit booking snowball into sharp sell off?

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: Will profit booking turn to sharp sell off?

Premarket analysis: 16 July 2020


US European markets are positive

Risk assets closed in green yesterday

Hope on vaccine for virus


Both DIIs & FIIs are booking profits continuously.

Global Markets: -Positive

US markets and European markets ended in green yesterday. US Dow jones broke out of tight range. Risk assets such as emerging market ETFs, Government bonds and high yield bonds rose yesterday. Industrial metal-copper is consolidating after a fast and furious raise. Safe havens US Dollar and Japanese yen continued to be subdued. Gold is holding on to its gains. VIX index cooled off and commenced its down trend

ASIAN Markets this morning: - Mixed

Asian markets are trading marginally in red and consolidating yesterday’s gains. European and US futures are trading slightly in red as well in the Asia session. SGX Nifty is trending down after opening above 10700 this morning. Currently it is trading almost flat compared to Nifty futures’ close yesterday.

Calendar Events:

There are no significant economic data release scheduled today.

India : -Profit booking continues

Nifty after raising in the morning session yesterday, witnessed heavy profit booking by both DIIs and FIIs in the afternoon session. DIIs, FIIs and large proprietary traders continue to be short in the index derivative open interest. However, If incoming quarterly results surprises and turns out to be better than expectations, the market sentiment could quickly change and the institutions will have to cover their shorts.

How will Nifty perform today? Find out HERE

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