Premarket analysis - 06 July 2020: # **Nifty break out confirmed?**

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: 06 July 2020


  • Asian Indices are breaking out

  • Emerging market assets are in green

  • FIIs bot in cash market on Friday


  • Virus situation is getting out of control

Global Markets: -Positive

US markets ended in green on Friday and starting to break out of consolidation range. European markets ended either sideways or slightly negative. The emerging market equity EFT and currencies traded in US continued to raise. Other risk assets such as high yield bonds rose as well.

Gold and dollar index retreated from swing highs. Japanese yen is down this morning. Volatility index has been falling.

ASIAN Markets this morning: - Green

Asian markets started the week on positive note. Most of the markets are breaking out of the symmetrical triangle pattern. The indices are likely to re-test the recent tops or go up further. SGX Nifty is trading about 100 points above the Nifty futures’ close on Friday. Indian Rupee is trading in positive territory and holding its last week’s solid gain. European and US futures are trading in green as well in Asia session.

Calendar Events:

There are no important economic data scheduled for release today.

India : -Breakout holds

Positive global mood and excess liquidity pumped by the global central banks are again lifting the emerging market assets. Volumes in both Nifty 50 stocks and Nifty 500 stocks were lower on Friday. That could be attributed to low volume trades from DIIs and FIIs. However, FIIs were net buyers in the thin cash market after a week or so while DIIs booked profit.

How will Nifty perform today? Lets find out here

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Market settled above the immediate resistance of 10720

Snap from premarket blog:

“…after break out of 10500, is continuing its up move towards 10720. A good support exists at 10200 while 10400 offers a decent support”