US Dow Jones opened lower yesterday and ended with a small gain. Emerging market ETF traded in US bounced back from lows yesterday. European futures this morning are pulling back as well. Global market seems to be taking a breather after two days of fall.
Purchasing Manager’s Index (PMI) for the month of April has comin in very low for almost all the economies. However, Goldman and Morgan Stanley said the global economy is bottoming out. We will only know it for sure after six months or year down the line.
Ace investor Warren Buffet is not in a mood to buy anything for now, which could mean that he expects bear market to continue for foreseeable future.
ASIAN Markets this morning:
Asian markets barring Japan’s Nikkei are up this morning. Chinese markets are also bouncing back.
India services PMI will be out tomorrow. Manufacturing PMI came it at 27.4 yesterday that was worse than many Asian peers and even some developed markets in Europe. Eurozone’s PMI was at 30. Expectation on Services PMI for India is 40. However, it could miss estimates as well because of tight lockdown enforced for the past 40 days.
There has been no major development on the macro front in India. India has started relaxing the tight lockdown conditions that should restart the frozen economy going forward. SGX Nifty is up more than 1.0% (+100 points) suggesting Nifty will also bounce back today.
NIIT TECH, Adani ports will announce their quarterly numbers today. Yes Bank will announce its numbers tomorrow
NIFTY -Technical Bias:
Price Action & Pattern:
After a sharp drop yesterday, SGX Nifty and Asian markets indicate a bounce back for Nifty today. It remains to be seen if the bounce back will sustain or market ends in a sideways market.
A short strange protected on the downside is appropriate for the day.