Premarket analysis 22 July- Will Nifty pause for breath?

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: 22 July 2020


  • Risk-on mood in global markets

  • Better than expected quarterly results so far

  • Positive news on economic reforms and trade deals


  • Economic recovery is still far away

  • Pandemic is not over yet

Global Markets: -Moderate gains

Global markets gained moderately and ended in green. Markets are gaining for about 5 days continuously. Agreement on European union rescue fund was latest positive news that lifted markets yesterday. Additional stimulus and fear index falling has helped emerging market assets gain considerably over the past week. EM equity ETFs and currencies traded in US continued to do well yesterday.

Safe haven US dollar took another leg down and Japanese yen is down as well. Gold however zoomed higher due to US dollar weakness. Industrial metal copper gained. Volatility indices are falling further and approaching pre-COVID levels.

ASIA this morning: - Mixed

Japanese Nikkei and Australian Indices are moderately in red while emerging Asia opened in positive territory. Emerging market currencies are up again this morning. European and US futures are also trading in green this morning. SGX Nifty is trading flat at around 11175.

Calendar Events:

There are no major economic data release scheduled for today.

Result announcement:

Today, Bajaj Auto, Bajaj Holding, L&T and Jindal steel are some of the heavy weights declaring their quarterly results.

India : -Dual between DIIs & FIIs continues

FIIs pumped in more than 2.2K crores in cash market yesterday while DIIs booked profit with moderate selling. Derivative open interest data shows an interesting picture. FIIs and clients are holding long position while DIIs and large proprietary traders are holding short position. DIIs have not exited their short position and still seems to be in the profit booking mood. Therefore, any large amount of selling and buying by DIIs and FIIs in the cash market could cause volatile intraday moves in the markets.

How will Nifty perform today? 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.

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