Pre market analysis: How safe are the bulls?

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: 10 July 2020


  • Emerging markets are holding weekly gains

  • FIIs bought in cash market & hold net long position in derivatives market


  • DIIs booked profit yesterday with sizable selling

  • Virus infections continue to hit all-time highs

Global Markets: -Sideways

US and European markets ended in red yesterday but they are still within the consolidation range. Emerging markets ETFs and other assets traded in US were not impacted much and they closed flat yesterday.

High yield bonds, emerging market currencies closed slightly in red. Industrial metals continue to zoom ahead. US Dollar and Japanese Yen strengthened a little. Gold is holding its weekly gains. Volatility index paused in its down ward trend.

ASIAN Markets this morning: - Mixed

Asian markets opened in red this morning and are in sideways coil since then. Chinese markets are consolidating after a stellar raise this week. Most of the emerging markets are holding on to their weekly gains. SGX Nifty is trading about 25 points below Nifty futures’ close yesterday.

Calendar Events:

Forex reserve position and bank lending and deposit data will be released today after market hours.

India : -How safe are the bulls?

FIIs net bought for Rs212 Cr. in cash market yesterday which is a small amount comparatively, while DIIs booked profit with net selling for about Rs.803 Crores. However the index gained more than 1% and ended above 10800. This shows that momentum is positive overall in the markets. FIIs and large proprietary traders are holding net long position in index derivatives market. Nifty and Nifty 500 stock volumes were lower yesterday.

How will Nifty perform today? Find it out HERE