Pre Market - Snapshot - 11- June - 2021

 


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 on gains from Banking, Reality, Metal and Pharma names. Index gained anywhere between 0.65% to 0.69%, mid and small cap stocks got their mojo back. 


For the day watch for the continuation of sector rotational trade playing out. As indicated earlier use pullbacks to rebuild positions and avoid chasing stocks at higher levels. As indices consolidate and sectoral rotation continues, there will be opportunities to buy the stocks within sectors that see some pullbacks.


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