Positives:
Global risk on mood is still intact. Safe havens USD, JPY continue to trend lower & Gold is on sideways coil
US & European markets consolidated
FIIs are still buying
ECB added more stimulus than market expected
Negatives:
Profit booking seen above 10K
Continuing border standoff with China
Global Markets: - Catching breath
ECB committed more funds in its policy decision to fight corona virus related recession. European and US markets are consolidating the recent gains. Europe ended slightly lower while US markets ended with some gains. Emerging market ETFs/assets traded in US are on consolidation as well.
The risk on mood is still intact with other risk assets such as high yield bonds, EM currencies are either consolidating or continuing to move up. Safe haven assets USD, JPY are trending lower while Gold is consolidating due to dollar weakness.
ASIAN Markets this morning: - Mixed
Asian market is retreating from the top and are on sideways consolidation. European and US futures are flat this morning in the Asia trading session.
SGX Nifty is trading flat as well comparted to the yesterday’s Nifty close.
Calendar events
Bank lending, Deposit growth and Forex reserve position will be released by RBI today after markets close. Bank lending has not picked up yet. PMI survey shows that financial services is one of the worst affected sector in Asia due to Corona virus.
India: Markets are done with profit booking or not?
In the absence of local triggers, Indian markets, for the past couple of weeks are swayed by the global sentiment and FIIs buying in cash segment. Globally, ECB added more stimulus and US is taking about adding even more stimulus. However, DIIs have been taking some profit off the table above 10K. Since the global markets are on consolidation phase, Institutional investors may keep taking profit off today as well.
Result announcement:
Exide Industries will declare its results today.
NIFTY -Technical Bias:
Price Action & Pattern:
In line with global sentiment, profit booking is likely to send Nifty on sideways coil with negative bias. Consolidation range is likely to be 9750-10250.
Trade Ideas:
Those holding spreads that performs well on sideways markets may continue to hold till a decisive break of the range is seen. Traders may also look at stock specific directional spreads based on the price action of those stocks.
