Pre Market - Snapshot - 20-07-2021


 

US stocks declined sharply on the fears that rising Covid-19 cases would slow global economic growth. Dow saw a cut in excess of 2%, its worst performance since October 2020. S&P closed down by 1.60% and Nasdaq by 1.10%. The small cap Russell 2000 lost 1.50% briefly touching the correction territory. It was risk-off across the asset classes be it stocks, currencies or bonds. 


US 10 year also declined sharply to an intraday low near 1.17% before recovering above 1.20%. Dollar index traded near 92.85, Cboe Vix moved higher near 22.


Crude futures saw a big cut of close to 7%, worst day in 10 months, on fears that rising Covid-19 cases may dampen demand. Brent fell below 69, WTI near 66.50. 


Indian stocks saw its worst day in three months pre-empting the Wall Street fall on fears of global 3rd and 4th Corona wave. Both the majors lost close to 1.10% lead by losses in heavyweights like HDFC bank on results disappointment. Despite of huge losses in front-line names, the advance - decline ratio remained more or less near equilibrium indicating the underlying resilience in broader markets. 


For the day watch for intraday support near 15650-15675 and recovery near Monday's close by end of the day for continuation of current uptrend. Wait for recovery signs post opening gap down (if any) by noon for intraday trading opportunities. Use options for short term trading till Nifty reclaims 15900.


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