Global markets consolidating close to swing tops
Virus vaccine could be available by end of the year
VIX index continues to fall while markets are consolidating
FIIs selling has not stopped in cash market
No positive triggers
Global Markets: - Sideways coil
Global markets both European and US closed in negative territory. They are in sideways consolidation phase close to recent pull back tops. Volatility index is trending down. Crude is consolidating after a dash to $35. Gold is not yet retreating and still on sideways move close to top.
Flash Purchasing manager’ index for Eurozone is around 35 which means the contraction is continuing very fast but it is not as bad as it was in April. US flash PMI is also in contraction zone.
ASIAN Markets this morning: - Consolidating with negative bias
Asian markets are following global market to consolidate at top of recent up move. Today almost all markets are trading in negative territory. SGX index is trading in negative territory 70 points less than yesterday’s Nifty close.
RBI Governor is expected to hold a press conference by 10.00 AM today. He is expected to announce extension of COVID related relief measures already in force such as moratorium of EMIs and special liquidity windows to NBFCs and Mutual funds
India: Double whammy of higher deficit and lesser stimulus
Locally, there are no positive trigger for India stocks. While fiscal deficit is likely to reach very high levels, there are no real stimulus available to business. Therefore, the negative sentiment on Nifty will linger for a while longer till pandemic related problems are solved with an invention of vaccine. India VIX is cooling off. That’s a positive
Godrej Industries will release results tomorrow
NIFTY -Technical Bias:
Price Action & Pattern:
SGX Nifty & Nifty both have retreated from recent swing tops and trading close to 9000 mark with negative bias. If 9000 is broken decisively, Nifty could commence its downward journey towards 8800 and then to 8000 levels. FIIs seems to be selling every pull back and it has not stopped yet.
Those who are holding bear spreads are good to hold till market shows signs of pull back.