Premarket Analysis: 2 July- Will Nifty's attempt to breakout succeed?

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 views.

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Premarket analysis: 02 July 2020


  • Asian markets and emerging market assets are in green

  • Global and India’s Purchasing manager’s Index was better than expected


  • FIIs net selling in cash market continues

  • Global markets are still within consolidation range

Global Markets: -Sideways coil

US and European markets ended slightly in red in a sideways market. However, risk assets such as High yield bonds, Emerging market assets gained. US dollar and Gold fell from the highs while Japanese yen was flat. All the asset classes are still trading within sideways range. Only gold had broken out of range. Volatility index both in India and in US are trending down.

Global manufacturing Purchasing managers index rose to 47.8. The global economy although is still shrinking, its speed of contraction has slowed with opening up of economies amid virus pandemic.

ASIAN Markets this morning: - Green

Asian markets started the day in green. They are still within the consolidation range. SGX Nifty is trading about 60 points above compared yesterday’s July futures’ close at NSE.

Calendar Events:

India’s purchasing manager’s index came in at 47.2 which was better than expected. The previous reading was 30.8. Any reading above 50 will mean economy is starting to grow.

There are no other important data release scheduled for today.

India : -Recovery?

GST collection and PMI for the month of June are hinting at better than expected economic recovery. End of lockdown measures seem to help economy to recover quickly. However, the virus infections have started growing fast and job losses continue to mount. Hence full recovery may be still far away.

How will Nifty perform today? Find it 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.

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Nifty broke out of range today.

Snap from premarket blog:
“…is likely to test 10500 today and could reverse from there due to profit booking. Break out above 10500 will be bullish and Index may move towards the wedge top of 10600… need to wait for price action at around 10500 and decide the trade.”