European and US markets continued to move higher and pull back continues in emerging market equities. The virus death toll in those economies are abating and governments are exploring ways to open up the economy. Asian Markets this morning is showing mixed trends some markets such as Nikkei is down slightly while few other markets are eking out small gains. Crude oil continues to fall due to the fear of shortage of storage
There are no other macroeconomic triggers other than the talk of opening up. The central banks loosening the policy and more governments spending are not new normal there fore they are not a trigger for markets to move up. The volatility continues to fall globally from very high levels.
India fiscal deficit and infrastructure output numbers will be out on this Thursday and Forex reserve position will be out on Friday.
Government is still debating whether or not to roll over the lockdown. There are also talk of restarting the economic activity. Probably the decision will be made public over the weekend. Government is also expected to come out with next round of measures to support small business and weaker sections of the society. However fiscal constraint facing India is all well known.
NIFTY -Technical Bias:
Price Action & Pattern:
Nifty consolidation is continuing inside a diamond pattern that is part a wedge. The daily range of price movements has contracted. In the absence of any specific trigger, today could very well be another day of sideways move. The price could largely stay around 9130 to 9450.
Short strangles protected on the down side is not a bad idea for the day. This strategy is also called twisted sister option strategy.
View and Ideas are welcome