Positives:
All around recovery in risk assets globally
Stock, Industrial metal, crude are all continuing to move up
Industries and economies are opening up
VIX index continues to fall
Negatives:
FIIs selling has not stopped in cash market
No positive triggers
Global Markets: - Risk on mood
Global markets closed up again yesterday. Both European and US markets closed with more than 1% gains. Volatility index is falling. Emerging market ETF is also continuing to gain. There seems to be all around risk-on mood with most asset classes doing well. Crude stays above $30 and Industrial metals and other commodities are shining as well. Gold is consolidating close to its recent highs
ASIAN Markets this morning: - Mixed
Asian markets opened up with gains in the morning but since then they are retreating or on sideways. The risk-on mood will likely lift the indices during the day. SGX index is struggling to hold onto yesterday’s gain and is trending down since morning. Currently its trading with about 45 points loss comparted to yesterday’s Nifty close.
Calendar events
FOMC minutes release was a non-event. It was released yesterday, dovish as markets expected hence it was largely ignored by markets
India: Global mood could drag it up a little but watch out.
Locally, there are no positive trigger for India markets. However, the risk-on mood and stock specific moves such as that of Reliance could drag the Nifty up a little further. FIIs seems to be selling on all pull backs, hence the up move could meet with frequent selling pressure.
Reliance's rights issue opened yesterday but data on first day subscription is not encouraging. It was only subscribed 0.27% on Day 1.
Result announcement:
Bajaj Financial services, Bajaj holding will declare results today. Godrej Industries will release its results tomorrow
NIFTY -Technical Bias:
Price Action & Pattern:
Nifty having broken above 9000 mark could go up with support of global risk on mood. However, traders need to be mindful of FIIs selling at pullbacks that could trigger sharp drop. Nifty also faces resistance at 9130
Trade Ideas:
Low level of interest in Reliance's rights issue on day one perfectly captures the skeptical mood of traders and investors. Hence traders should wait for a decisive break of 9130 for bullish trades.
