Both FIIs & DIIs bought in the cash market
Global markets are holding the recent gains and consolidating
Uncertainty in India-China border stand-off continues
Global Markets: -Consolidation
US and European markets are continuing to consolidate and hold their recent gains. Both US and European markets ended negatively yesterday. Other asset classes are consolidating as well. Bloomberg reports that the trading volumes in global markets are lower and it is one third of average volumes. Japanese yen, dollar are holding gains and trading largely unchanged this morning.
ASIAN Markets this morning: - consolidation
Asian markets are trading mixed this morning. No major movement except in Australian Index which is up by close to 1%. Other markets are in sideways coil with small gain or loss. SGX nifty is trading about 50 points below Nifty’s yesterday close.
Forex reserve position, deposit and loan growth will be released today after market closes.
India: -Relief rally but no depth
The border situation is calm currently although there is no progress in resolving the issues. Indian markets were sharply up yesterday on the back of both FIIs and DIIs buying in cash market yesterday. Nifty broke psychological market of 10k with confidence.
How will Nifty perform today?
Trading turnover was lower on Nifty 50 stocks as well as for whole of NSE yesterday in spite of sharp up move. The daily turnover of Nifty stocks were down by Rs.2100 Cr. Therefore, the sharp up move was due to both FIIs and DIIS buying in thin market. Since markets have gone up sharply yesterday, unless both FIIs and DIIs continue to buy today as well, Nifty is likely to be in sideways range.
LIC housing finance, Cadila will be declaring results today.
NIFTY -Technical Bias:
Price Action & Pattern:
10K levels have been broken on account of institutional buyer’s support, It is unlikely that either FIIs are DIIs will book profit in a low volume market while global markets are consolidating. Therefore, I expect markets to trade sideways within the range of 10150 to 9850 today.
All there was a sharp up move yesterday, markets are still range bound and continues to trade sideways. Those holding spreads that benefit from sideways raising volatility could hold till either side of the trend line is broken decisively.