Pre-Market Analysis - 24 June2020

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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Pre market analysis: 24 June 2020

Positives:

Global markets ended in positive territory yesterday

Flash Purchasing Manager’s Index for major economies show sharp rebound for June

Both FIIs & DIIs bought in the cash market yesterday

India China decided to deescalate tension

Negatives:

Global markets are still cautious amid second wave of virus

Global Markets: -Consolidation continues

Both European and US markets ended with gains but indices are still within the consolidation range. Safe haven asset US Dollar is drifting lower that made Japanese yen and gold gain against USD. Emerging market currencies and High yield bonds were in sideways consolidation phase while Asia emerging market equity ETFs rose again yesterday. Volatility index is cooling off further.

ASIAN Markets this morning: - Consolidation

Most of the Asian markets opened the day with gains and started drifting lower. They are still trading in positive territory. SGX Nifty is trading flat at around 10450 levels after touching high of 10530.

Calendar Events:

There are no major regular economic data to be released today

India : Catching up with global market

Both DIIs and FIIs bot yesterday in the cash market but in smaller quantity. Overall volumes in both Nifty50 stocks and Nifty500 stocks were down for the second day. The advance decline ratio was very bullish. 1030 stocks advanced in NSE as against 377 stocks that declined. There are no signs of profit booking yet from DIIs or FIIs. Indian markets which lagged behind other developed markets in the recent rally is trying to catch up at last.

Will Nifty break above 10500.? Lest find out 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 traded between 10553-281 with negative bias
As per my pre market analysis, I expected markets to open low and gradually move but it opened high and drifted lower…

It doesn’t matter much for a spread trader

Snap from premarket blog:
“….Market are likely to trade with positive bias but be range bound between 10550 and 10280…”