Sarthakreturns

  US stocks closed the quarter with strong gains. On the last trading day of the quarter Dow gained in excess of 200 points, S&P closed at fresh record highs. Nasdaq closed marginally weak in a rotational trade. The small cap Russell 2000 also moved higher. Economy facing names like Boeing, Walmart and Goldman Sachs lead bulk of gains at Wall Street.  US dollar index moved higher near 92.40, 10 year closed marginally down below 1.47, Cboe Vix closed below 16.  Crude futures traded flat, Brent below 75, WTI near 73.50. Indian stocks once again traded choppy, after opening strong taking cues from global markets stocks gave up a large part of the gains to trade in and out of flat line. Weakness in Banks, Oil and Gas stocks offset strength in IT and Consumer stocks. The fears of new Delta variant of Covid-19 overpowered the good news on current Covid-19 data and probable ease of restrictions. For the day watch for economic data like auto sales and PMI numbers along with w...

  US markets edged higher on conference board's consumer confident index that reported higher than anticipated rise. Both Nasdaq and S&P 500 closed moderately higher above flat line into fresh record zone. Dow also crossed flat line with small gains. The small cap Russell 2000 closed just below the previous close.  US dollar index moved higher above 92.05 level, Cboe Vix closed above 16, 10 year traded flat near 1.48%.  Crude futures moved up a day prior to OPEC+ meet on raising output to meet rising demand. WTI moved above 73, Brent above 75.    Indian stocks fell on Tuesday owing to Asian equity cues and fears of height near 15900-16000 zone. Banks, Autos and Metal names saw some selling pressure, FMCG and Pharma stocks tried to support the market but the selling pressure took markets deeply into red. Mid and small cap stocks also tried to hold the ground and there were pockets of outperformance in names outside the indices. For the day markets may continu...

 US Stocks were mixed on Monday, Dow fell 0.44%, S&P 500 and Nasdaq hitting fresh record highs gaining 0.23% and 0.98% respectively. The small cap Russell 2000 also fell 0.52%. Market are now awaiting fresh triggers and looking for firm direction on one side.  US dollar index traded steady near 91.91, 10 year fell near 1.48%, Cboe Vix rose marginally but still trading below 16. Crude futures declined ahead of OPEC meet, WTI below  73, Brent below 75.  Indian stocks once again turned choppy ahead of FM's press conference announcing additional Covid measures to boost the growth. Both Nifty and Sensex closed lower after opening firm into fresh record territory. Metals and Healthcare sector saw some gains but IT and Capital goods stocks saw some profit taking at higher levels. Mid and small cap stocks saw some gains on back of select stocks specific action.  For the day watch for continuation of rotational trade in index heavyweights. There are fresh breakouts o...

US stocks ended the week mixed. Dow rallied  0.69%, S&P added 0.33%,  small cap Russell 2000 closed just above flat line, Nasdaq closed marginally below the flat line.  Indian stocks moved higher lead by Banking, Metal and IT names. Both Sensex and Nifty closed higher by near 0.43%. Friday's rally was largely broad-based with more sectors participating as against Thursday's trade that was dominated by heavyweights like Infosys.  For July series focus on minor pullbacks to trade long on indices as well as individual names. Nifty may face some more consolidation before breaking out above 15900-16000 zone but individual names may start to move higher giving reasonable opportunity to trade.

US markets closed higher on hopes of 1.2t$ infra deal to conclude soon. Dow gained almost 0.95%, Nasdaq added 0.69% and S&P closed 0.58% higher. The small cap Russell 2000 outperformed with gains of 1.31%. Both Nasdaq and S&P closed at fresh record highs.  US dollar index traded flat near 91.85, Cboe Vix closed just below 16, 10 year traded near 1.5%.  Crude futures traded higher ahead of OPEC meet on 1st July. WTI moved above 73, Brent above 75.  Indian stocks moved higher on quadruple witching day. Nifty closed 0.66% and Sensex closed 0.75% higher. IT stocks were the main contributors to the gains. It was a dull day for broader markets despite of solid gains on the indices.  For the day watch for more rotation in stocks as more sectors start participating. Once again focus on intraday give backs to load on positions for the next day and chasing strength may not be very rewarding for immediate term.

US stocks ended mixed as investors started to look at new triggers for the market beyond economic recovery and fears of inflation. Dow fell 0.21%, S&P closed just below flat line, Nasdaq closed at new record with small gains of  0.13%. The small cap Russell 2000 also closed just above flat line.  US dollar index traded in a narrow range near 91.81, 10 year moved higher above 1.48 ahead of crucial jobs data, Cboe Vix closed flat just above 16.  Crude futures traded flat WTI near 73, Brent near 75. Indian stocks ended down on weakness in metals & oil and gas sector. Indices closed nearly 0.54% down as stocks turned volatile ahead of June derivatives expiry. Mid and small cap stocks also fell on profit booking. Auto sector was the sole winner in an otherwise dull market. For the day, stocks may continue to trade choppy on June expiry related volatility. As indicated use give backs to rebuild positions for July series with sufficient provisions for initial mark to mar...

US stocks edged higher building up on the gains of Monday. Nasdsq closed at record levels gaining near 0.80%, Dow gained near 0.20%, S&P added 0.5% to previous its close. The small cap Russell 2000 added 0.43% to Monday's close. Names like Microsoft (hitting 2tn$ milestone) and GameStop gained after Fed Chair reiterated in testimony to Congress on Tuesday that the current rise in inflation is transitory. Other tech names like Facebook, Twitter, and Netflix also saw strong gains. US dollar index declined further near 91.75, Cboe Vix moved below 17, 10 year also moved down to 1.47%. Crude futures traded steady, WTI near 73, Brent below 75. Indian stocks closed in the green after a choppy session erasing most of the intraday gains ahead of the June expiry. Autos and Power stocks lead the gains offset by weakness in FMCG majors and some of banking heavyweights. IT and Metal names also saw some modest gains. Optimism on re-opening and Covid-19 numbers met with profit booking near Ni...

 US stocks fell on Friday,  Dow posting its worst weekly loss since October, as traders worried that the Fed could start raising rates sooner than expected. Dow dropped 1.6%, S&P 500 slid 1.3% , Nasdaq closed 0.9% lower. US dollar index continued to move higher before closing near 92.25, 10 year continued to move down near 1.43%, Cboe Vix moved up above 20 to close near 20.70. Crude futures traded steady, Brent below 74, WTI near 72. On Friday, Indian stocks turned highly choppy on the back of global cues, after opening strong  indices fell close to 1.50% before recovering all losses to close just below flat levels. The fear of Fed raising rates sooner than expected and China's move to curb commodity prices by selling reserves were the two prime reasons for the volatility. Mid and small cap stocks were also on the receiving end as there was lot of froth building up in individual names. For the week, stocks may continue to trade choppy ahead of June series expiry and g...

US stocks fell on Wednesday post Fed statements of rate hikes somewhere in next two years. Markets viewed the change in dot chart as somewhat hawkish and started discounting the possibility of rate hikes sooner than later.  Dow dropped 0.77% on close, recovering from intraday loss of more than 1%, S&P closed down by 0.54%, Nasdsaq had a relatively smaller cut of 0.24%. The small cap Russell 2000 also saw a smaller cut of 0.23%. US dollar index and 10 year bond yields surged sharply on Fed's mild hawkish outlook, dollar index moved close to 91.50, 10 year above 1.59%. Cboe Vix moved higher at 18. Crude futures also saw some profit taking, WTI traded below 72, Brent below 74. Indian stocks snapped a three day record closing run pre-empting the Wall Street fall. Nifty fell by 0 64%, Sensex by 0.51%. Mid and small cap stocks were also on the receiving end on some profit taking in broader markets.  For the day, stocks may react on overnight cues from global markets at open but ...

  US stocks slipped from their record highs ahead of key policy Fed meeting. Investors were also focusing on PPI for the month of May that rose to the highest levels nearly in a decade. Dow fell almost 0.27%, S&P lost 0.20%, Nasdaq slipped the most with 0.71% cuts. The small cap Russell 2000 closed down by 0.26%. US dollar index traded steady near 90.53, 10 years also traded flat just below 1.5%, Cboe Vix closed above 17.   Crude futures traded higher, WTI above 72, Brent above 74.  Indian stocks moved higher to close into fresh record levels taking a cue from US and some of the Asian markets that were trading at ATH.  The banking, Reality and Oil and Gas sectors took the markets to new records. The small and mid cap stocks were also in demand on hopes of easing restrictions.  Markets may consolidate for a day ahead of key Fed meet outcome before deciding on the future course of action. Meanwhile stock specific action may continue to dominate the trade ...

US stocks traded mixed, both Nasdsq and S&P closed at fresh record levels however Dow and small cap Russell 2000 closed below flat line.  The markets are currently awaiting Fed meet highlighting the roadmap to monetary policy going ahead. Though there is a lot of caution for immediate term ahead of crucial Fed meet, the underlying current seems to remain of optimism on the back of economic recovery, record corporate profit generation, accommodative fiscal /monetary policy. US dollar index traded flat near 90.51, 10 years moved higher near 1.49%, Cboe Vix moved up to 16.39. Crude futures traded flat, WTI near 71, Brent near 73. Indian stocks turned choppy on news of some institutional accounts holding particular group stocks getting frozen pending clarification on beneficial ownership. Stocks opened with deeper cuts on the news but recovered most of the lost ground on clarification by NSDL that those accounts remain "active". The market movements of yesterday is a crude re...

US stocks advanced on Friday as investors shrugged off the inflation concerns as short-term spikes.  Dow moved just above the flat line, S&P had yet another record close gaining 0.19%, Nasdaq gained almost 0.35%. The small-cap Russell 2000 once again outperformed with gains in excess of 1%. US dollar index saw a strong rebound from sub 90 levels to trade above 90.5. Cboe Vix declined to multiweek lows near 15.65, 10 years traded steady at 1.46%. Crude futures moved higher, WTI moved above 71, Brent nearing 73. Indian stocks reached all time highs on Friday both on an intraday and closing basis, it was a fourth straight week of gains for the benchmarks. IT and pharma sector took the lead on Friday but banks stocks took a breather.  For the week global markets would be watching the monetary policy meeting where the Fed may outline the future of monetary easing and a roadmap of tightening. Stocks may remain choppy ahead of the Fed meeting. Continue to be vigilant on trading p...

  US stocks moved up   despite of higher than anticipated CPI print for the month of May, it came at 5% as against expectation of 4.7%. S&P closed at record highs, Nasdaq moved above 14000 (gaining  almost 0.78%). Both Dow, closing just above flat line, and small cap Russell 2000, closing 0.68% in red, underperformed the markets.  Despite of higher than anticipated inflation print, US 10 year declined to 3 month lows near 1.44% as investors shrugged off the number thinking it to be transitory due to supply-side concerns. Also there was a goodish demand of treasuries that lead to 10 year falling. The inflation internals also point out to pricing pressures due to factors like chip shortage, non availability of labour and supply-side distruption in select commodities.  US dollar index traded flat just above 90, Cboe Vix declined to 16. Crude futures traded steady, Brent above 72, WTI above 70.  Indian stocks recovered most of the previous day's losses...

  US stocks lost steam ahead of key inflation data that is due today.  Dow lost 0.44%, S&P lost 0.18% , Nasdaq traded just below flat line. The small-cap Russell 2000 that outperformed in the last few sessions lost close to 0.71%. US 10 year surprisingly declined to multi-month lows at 1.48% on tepid economic data and high investor demand. US dollar index traded flat near 90.15. Cboe Vix moved higher near 18.  Crude futures traded flat, WTI just below 70, Brent near 72. Indian stocks saw some profit-taking at higher levels ahead of crucial inflation data from the US, fearing the higher deficit on the free vaccine and food grain rollout. Indices lost close to 0.65% on selling on heavyweights like RIL, ICICI. The current and possibility of some more giveback are welcome news for markets to takeout some froth building up in stocks.  For the day, focus on weekly options expiry-related volatility and some stock-specific action on weekly positions. For the rest of the ...

US stocks traded mixed on Monday; the risk of rising inflation and concerns on higher taxation resurfaced, taking DJIA and S&P lower by 0.36% and 0.08%, respectively. Nasdaq, however, closed higher by almost 0.5% on gains in biotech names; approval of Biogen's Alzheimer's drug helped other biotech shares to move higher. The small-cap Russell 2000 was a ranked outperformer with gains of over 1.43%.  US dollar index declined further to trade below 90, Cboe Vix traded flat near 16.4, US 10 year also remained unchanged at 1.57%. Crude futures consolidated near 2-year highs, Brent traded near 71.5, WTI above 69. Indian stocks moved higher on the news of partial re-opening of the economy, helping domestic-focused stocks to gain some ground. Nifty traded at new ATH, and Sensex moved towards life highs. There was a clear sign of money moving into the economy-facing names like BFSI, Autos, Engineering/Cap goods, along with strong moves in mid and small-cap names in hopes of strong b...

US stocks finished higher on Friday as non-farm payroll data showed less than expected gains leading investors to believe that Fed may continue to maintain an easy bias for an extended period.  Dow added 0.52%, S&P was up by 0.88%, Nasdaq gained the most as 10 years lost some ground, the index gained almost 1.47%. The small-cap Russell 2000 underperformed the market with 0.31% gains.  US dollar index fell to 90.10, 10 years corrected sharply below 1.57%. Cboe Vix also fell near multi-week lows below 16.50 Crude futures moved higher, moving into new multi-month highs on US jobs data, Brent crossed 72, WTI above 69. Indian stocks consolidated on Friday as progressive RBI policy had some offset in terms of profit-taking and global equity cues. Nifty continued to trade in life high zone with some soft bias, Sensex traded just below ATH. For the week, as more and more States begin to unlock, there can be some sector rotation trade that may start to emerge. Stocks may start to d...

US stocks fell despite strong jobs data and news that President Biden is reconsidering the proposal to raise corporate taxes.  Dow closed just below the flat line, S&P lost 0.36%, Nasdaq saw a cut in excess of 1%.  The small-cap Russell 2000 also lost 0.81% in Thursday's trade.  US dollar index saw a strong rebound near 90.50, 10 years rallied near 1.63%, Cboe Vix also inched higher near 18.  The US infrastructure bill entered its final phase of negotiation with President Biden reconsidering corporate tax hike to 28% with a minimum tax of 15% to convince Republicans to up the allocation. Republicans have proposed less than $1tn for spending on infra. Crude futures traded flat as the US dollar started to rally, WTI traded in and out of 69, Brent just above 71. Indian stocks closed at record highs (Nifty made new intra-day high, Sensex moved close to record intra-day high) on gains in metals, financials, and realty names. Mid and Small caps stocks also had a strong...

 US markets closed marginally higher as economic crosscurrents continued to dominate the minds of participants. The Fed's beige book report also indicated that despite rising prices and difficulty in hiring, the economy continues to recover. All the four US indices (Dow, S&P, Nasdaq, Russell 2000) gained anywhere between 0.7% to 0.14%.  US dollar index continued to trade below 90 at 89.90, 10 years retraced back below 1.6% to trade near 1.59%, Cboe Vix also declined close to 17.  Crude futures traded higher, Brent above 71, WTI nearing 69. Indian stocks ended mixed as gains in banking stocks, and market heavyweight RIL was offset by weakness in Technology and FMCG names. Metal stocks saw some uptick in recovery in the commodity prices. As large caps consolidated, money started to move into mid/small-cap names that are having party time since the beginning of May (we have been indicating since the end of April that indices may proceed with a slower pace, but mid and sm...

US markets end mixed on Tuesday; optimism on improving economic data was offset by fears of higher inflation. Dow closed marginally above the flat line, S&P closed just below the flat line, Nasdaq lost some points below the flat line. The small-cap Russell 2000 outperformed the markets with gains over 1%.  US dollar index traded marginally higher at 89.9, Cboe Vix inched up to close near 18. 10 years traded flat above 1.61%  Crude futures moved higher, WTI nearing 68, Brent nearing 71, taking the prices to 3-month highs for Brent, and multiyear highs for WTI. OPEC+ demand forecast and moving slow on tapering-off of production cuts had its set-off against possible supply increase from  Iran if the sanctions are lifted. Indian stocks took a breather in / near lifetime high zone. Nifty registered a new intraday high before settling just below the flat line at the close. Sensex inched closer to life highs on an intraday basis before closing a tad below the flat zone. For ...