Premarket analysis: 19 July

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: Breaking out again?

Premarket analysis: 19 July 2020


  • Better than expected quarterly results so far

  • Risk on mood in global markets

  • Institutions covered their shorts in derivative markets


  • Virus spread starting to cause concern on economic recovery

Global Markets: -Sideways

US markets and European markets ended slightly in red on Friday. The are still within the consolidation range. Risk assets such as high yield bond continued to raise while emerging market assets paused and consolidated. US Dollar and Japanese rose slightly within in their consolidation range. Gold is still trading with positive bias and refusing to budge from the highs. Volatility indices commenced their downward trend after a brief pause

ASIAN Markets this morning: - Mostly in red

Asian markets opened the week moderately in red barring china which is up 1%. The Asian markets are still having positive bias although they are stuck in range bound phase for some time now. European and US index are trading in negative territory in the Asian session this morning. SGX Nifty is trading flat compared to Nifty’s futures close on Friday.

Calendar Events:

There are no significant economic data release scheduled for today.

India : -Shorts covered

FIIs and large proprietary traders covered their short position in futures and options segment on Friday. This probably caused sharp spike in the last hour of the trading on Friday. FIIs and proprietary traders together hold about 2.4% of long position in index open interest. The Cash segment did not see much volumes from DII and FIIs on net basis. Better than expected quarterly results so far from Industry heavy weights have played a role. HDFC bank’s results that was declared on Saturday was better than expectations as well. However, the forward guidance was cautious and bad loans, defaults are expected to raise in the following quarters.

How will Nifty perform today? Find out HERE