Global stock indices are consolidating after three days of up move
Industrial metal, Crude are continuing to move up
VIX index is falling globally
Stimulus package euphoria died down & turned out to be negative
FIIs continue to sell in cash market
No positive triggers
Global Markets: - Consolidation
Global markets were up for three days and yesterday entered consolidation phase. Dow Jones was down 1% and European markets were flat. However, copper and crude continued to move up. VIX indices were trending down.
ASIAN Markets this morning: - Mixed
Asian markets are consolidating in the morning trade. While some of them are up, most of them are trading marginally in negative territory. SGX Nifty is trading 40 points up compared to yesterday’s Nifty close.
FOMC minutes of meeting will be released by FED tonight.
India: No positive trigger.
While stimulus euphoria has died down. FIIs have been consistently selling in the cash market for few days now. In the absence of positive trigger, Nifty may trade sideways without direction. However less stimulus seems to have positive impact on bond market. Indian rupee is also holding steady.
Reliance rights issue starts today. Positive or adverse news about subscription could cause temporary volatility in the market
Bajaj auto, Dr.Reddy’s, Jubilant food, Ultra tech cement will declare their quarterly results today.
NIFTY -Technical Bias:
Price Action & Pattern:
Nifty seems to have stuck between 8800-9000 for now. I expect a sideways market today. Close above 9050 will be positive.
Option spreads suitable for range bound markets are suitable for today’s trade