Premarket Analysis: Nifty: Up move halted or just a pause?

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

Nifty: Up move halted or just a pause?

Pre market analysis: 25 June 2020


  • FIIs bot heavily yesterday in cash market

  • Hopes of global economic rebound is still alive


  • Global markets especially developed markets fell sharply yesterday

  • Worries about second wave of virus

Global Markets: -Sharply down

Both European and US markets ended sharply lower yesterday. They were down about 3%. Second wave of virus worry is growing. IMF warned that global recession could be deeper than expected and said global economy is likely shrink by around 5% as against its earlier prediction of around 3% contraction. Safe haven asset US Dollar, JPY did not react much and were on sideways coil. Gold held on to its gain on account of US Dollar’s recent down move. Emerging market equity ETFs that are traded in US fell sharply as well. However, one exception is the emerging market currencies. They did not fall much and mostly held onto their recent gains. Volatility index rose as equity markets fell sharply.

ASIAN Markets this morning: - Down as well

Most of the Asian markets are trading deeply in red. They are down by more than 1.50%. SGX Nifty is more than 100 points below Nifty’s yesterday’ close.

Calendar Events:

There are no major regular economic data to be released today

India : Global mood spoiled the rally

FIIs bot heavily in the cash market yesterday even though the European markets were falling. DIIs booked profit to the tune of Rs.1525 Cr. Advance decline ratio was negative with 459 stocks advancing against 947 declining. The trading volumes for both Nifty 50 and Nifty 500 were higher as markets fell yesterday. Recently, the volumes are higher on down days than on up days. This is a sign of market top.

How will Nifty perform today? Let check 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.

Volatile market ended almost flat.
Traded between 10360-10191

Snap from premarket blog:
…I expect markets to trade between 10300 to 10K. Most of the move could be over in first 15-30 minutes. Markets may see volatility…"