Global markets are mostly in sideways consolidation phase. Overnight US Dow Jones closed lower. The European indices closed lower as well yesterday. Sideways move close to the recent swing bottom is continuing. There are no other significant developments in global markets yesterday
ASIAN Markets this morning:
Asian markets this morning are a trading slightly lower and are in sideways movement as well. However, SGC Nifty is trading more than 100 lower than yesterday’s close.
RBI will release data on forex reserves, bank loan and deposit growth tomorrow. Trade deficit numbers will be released on May 11. Today is a clearing holiday on account of Buddha Pournima. Currency markets are closed. Stock markets will be open for trading.
PMI services data released yesterday came in very low at 5.4% meaning services activity essentially froze over on account of strict COVID 19 related lockdown.
There is no significant macro-economic development in India. Probably markets and FIIs could be taking note of fiscal constraints India is facing and its inability to offer large stimulus without risking a rating downgrade.
There are no heavy weights declaring results today.
Yes Bank result yesterday was better than analyst expectations although the quarterly loss was large. The quarter ended in net profit of 2,628.61 Crore thanks to extortionary profit of 6,296.94 crores. Click here to read Yesbank's press release on quarterly results.
NIFTY -Technical Bias:
Price Action & Pattern:
Nifty consolidated yesterday with downward bias. SGX Nifty indicates a gap down opening for Nifty today. After initial reaction Nifty may continue to drift lower
I expect Nifty to open gap down and drift sideways with a bearish bias. Nifty will be moving towards 8800 level this week.
A directional bear vertical spread is appropriate