European markets were up again yesterday while US markets were consolidating & down by about 0.5%
VIX indices are still trending lower
FIIs net buy for about Rs. 2.3K Crores in cash market again
Asian markets are mostly negative after 3-4 days of up move
Geo political risks are bubbling up
India-China border dispute
Global Markets: Looks like consolidation
Global markets are consolidating after 3 -4 days of solid up move. European markets ended higher yesterday but their futures this morning is down by about 1% in Asia trading session. US Dow Jones closed down by about 0.5% and the futures are down as well this morning.
The geopolitical risk associated with Hong Kong is raising. US president will announce measures possibly economic sanctions on China this evening. The calmness in the VIX index indicates that the global markets are consolidating at the moment, bubbling geo political risks could threaten trade and send market sharply lower.
The Gold is up but USD is down because of strong Euro.
ASIAN Markets this morning: - Sideways with negative bias
Any tough economic sanctions on China could hit trade flow in Asia. Obviously, the Asia markets are on watch. They are mostly trading with negative bias this morning. SGX Nifty index is down about 100 points compared to yesterday’s Nifty close but seems to be recovering from morning lows
India’s Fiscal deficit, GDP growth and infrastructure output numbers will be released by today evening after market closes. Purchasing Manager’s Index will start flowing from June 1.
US President press conference will announce counter measures on China
India: -Economic woes plus geopolitical risk
Apart from Hong Kong related geopolitical risk, India is facing its own border dispute with China. The festering border stand off could flare up. However, FIIs are buying again and India VIX is still trending lower indicating things are not likely to get out of control. Yesterday FIIs net bought for about Rs.2.3K crores.
Equitas, Jubliant and KEC will declare their quarterly results today.
NIFTY -Technical Bias:
Price Action & Pattern:
Nifty did not go up as much as other markets during the last few days of rally. Political risks and US president news conference after market hours will keep Nifty tense and range bound. At the moment chances of market breaking out of 9520 does not look bright. At lower level, Nifty may take support at around 9180.
India VIX may raise.
Spread traders may watch out direction of VIX and do spreads suitable for sideways market.