Global Markets: - Risk-on is back on
Global markets are rebounding. All most all risk asset classes are rallying, European equities, US equity markets, crude oil and even industrial metal such as Copper. It appears that brief correction is over and upward move will continue for a while.
ASIAN Markets this morning: - Joining the Global markets in rallying upwards.
Almost all markets in the region are trading in positive territory this morning. SGX Nifty is up about 80 points as well
RBI will release data on forex reserves, bank loan and deposit growth tomorrow. Trade deficit numbers will be released on May 11. Industrial production and consumer price inflation numbers will be out on May 12. India’s industrial output is estimated to fall by 8.7%. Consumer price inflation is expected to fall to 5.68% Vs 5.91%
India: - Reliance Industries is on overdrive to cut debt
Apart from Global risk-on rally improving the overall mood, there are few good news in the domestic front as well.
First Indian Rupee is rallying in off-shore markets as safe haven USD is pulling back.
Second Reliance Industries Ltd (RIL) is moving fast and bringing in new investors to its subsidiary “Reliance-Jio” almost every day. There are also news that RIL will be selling its stake in Asian Paints through block deals. This could send Asian paints share down but Index heavy weight RIL is expected to do well and maintain its upward momentum. Credit rating agencies has said that aggressive debt reduction plan followed by RIL is credit positive.
Adani Gas, Reliance capital, Reliance infra, SBI Card are few notable names that will be announcing quarterly results today. Tomorrow ICICI Bank & HDFC AMC will declare their results.
NIFTY -Technical Bias:
Price Action & Pattern:
Nifty has been consolidating for few days with negative bias. That may change today with global risk-on mood lending support. SGX Nifty indicate a gap up opening for Nifty and the momentum is likely to continue during the day.
A directional bull vertical spread is appropriate