Premarket analysis: Nifty: Is profit booking over?

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.

Click HERE to view details. Be in touch on TWITTER for regular intraday updates

Premarket analysis: 17 July 2020


  • Global markets are in bullish trend

  • Risk assets are consolidating gains

  • Domestic Institutions bought in cash market heavily yesterday


  • FIIs are still booking profits.

  • Virus is spreading fast

Global Markets: -Sideways with positive bias

US markets and European markets ended slightly in red. But they are still trading near top of the range. Developed markets are actually trying to break out of the consolidation pattern and move up again. Emerging market ETFs, High yield bonds were consolidating in sideways market yesterday. Copper has paused on its up trend. Safe havens US Dollar and Japanese yen continued to be subdued. Gold fell a little, but it is still holding on to its gains. Volatility indices were steady.

ASIAN Markets this morning: - Mostly in green

Asian markets are trading sideways with small gains this morning. Chinese markets are also rebounding from yesterday’s losses. European and US futures are trading slightly in positive territory in Asia session. SGX Nifty opened in green and trending up since morning. Currently it is trading about 70points above Nifty futures’ close yesterday.

Calendar Events:

There are no significant economic data release scheduled for today.

India : -Profit booking moderated

Nifty was is sideways coil yesterday for most of the day but rose sharply in the last hour of trading. DIIs stopped their profit booking and bot heavily in cash market. FIIs continued to book profit. DIIs, FIIs and large proprietary traders continue to be short in the index derivative open interest. However, the short position has sharply narrowed from about 8% of the total open interest to less than a percent yesterday.

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.