Premarket analysis: 29June - Consolidation or breakdown?

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: 29 June 2020


  • Expectation of Chinese stimulus helping industrial metals

  • DIIs supported markets on Friday.


  • Risk off mood is taking hold in global markets

  • FIIs booked profit on Friday.

  • Virus infections are hitting record high in emerging and in developed markets

  • Market consensus is leaning towards longer and stronger recession

Global Markets: -Risk Off mood

US and European markets saw a sharp sell off again on Friday. The weekly candle of US Dow jones was bearish while many other markets formed an indecisive doji candle. Most of the risk assets are falling and safe haven assets lead by Gold are trending higher. Copper is trending higher as well on expectations of Chinese stimulus. Volatility index in US rose on Friday.

ASIAN Markets this morning: - Still Consolidating

Asian markets opened lower this morning and are currently slightly rebounding from the lows. Markets seem to expect that last week’s risk off mood may continue this week. European and US futures are re- bounding slightly after Fridays sell off. SGX Nifty is trading is around 100 below comparted to Nifty’s Friday close.

Calendar Events:

Fiscal deficit and infrastructure output numbers will be released tomorrow

India : -Consolidation or breakdown?

FIIs net sold on Friday while DIIs supported the markets with larger net buy position in cash markets. NSE turnover was lower and advance decline ratio was slightly positive.

How will Nifty perform today? Lets find out here

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Nifty gapped down and went sideways after that…

Snap from premarket blog:

“….If Nifty holds 10180 by EOD, it could probably mean consolidation…”