Pre Market Snapshot - 07-07-2021

 



US stocks ended mixed in a choppy session on concerns that best of the economic recovery may be behind. After opening with deep cuts market staged a strong recovery taking Nasdaq into fresh record closing highs, S&P also recovered part of the losses to close marginally below the flat line, Dow however closed in red with cuts of nearly 200 points. The small cap Russell 2000 also saw a cut of close to 1.35%.


US 10 year declined sharply to 4 month lows near 1.35%  on disappointed services sector data that prompted traders to unwind tighter monetary policy bets. Markets may be watching today's Fed meet outcome for direction. US dollar index moved higher above 92.50, Cboe Vix moved higher near 16. 


Crude futures fell from a six year high level on oil producers stand off. WTI fell below 74, Brent below 75.


Indian stocks closed below the flat line in a volatile trade that erased the first half gains. Markets saw strong gains during the first half that took Sensex to fresh intraday and Nifty just shy of record intraday highs. Stocks saw a sharp sell-off in last hour of trade on profit warning from auto giant TATA Motors that surprisingly warned of chip shortage resulting into Q1 losses. The strength in banking names managed to offset deeper cuts in the markets but was not enough to stop indices to close below the flat line. 


For the day watch for some more choppiness and avoid putting additional money to work till Nifty takes out resistance zone of 15900-16000. For extreme short term trend watch for intraday sell-off to make a quick trade for a day or two.


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