Pre Market - Snapshot - 07- June - 2021




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 draw some comfort on ease of restrictions and are in the deep oversold zone /underperforming since the Covid-19 second wave may see some heightened activity at the cost of defensives. For traders, that may provide a short-term opportunity to make some quick bucks.


For the medium term, as the trade starts to unlock, lots of investment opportunities may start to unfold in an economy facing sectors like Autos, Engineering / Cap goods, BFSI, Metals (sectors mentioned on Friday) along with Cement and Real estate. Barring unforeseen events like the Covid-19 3rd wave (feared in July- August), the above-mentioned sectors may throw some interesting opportunities for investments. Watch out for final consolidation in June and emerging trends to unlock in the next couple of weeks for the next move higher.

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