Pre Market - Snapshot - 30-07-2021

 



US stocks rose on Thursday shrugging off disappointing GDP and jobless claims data. Investors took comfort from Fed statement on continuation of accommodation till economy starts to recover. Dow and S&P traded at record levels gaining more than 0.40%, Nasdaq closed marginally above flat line. Russell 2000 once again outperformed with gains in excess of 0.65%. 


US dollar index declined further to 91.86, 10 year moved higher near 1.26% on risk-on trade. Cboe Vix closed below 18. 


The risk-on trade and weakness in dollar helped crude to move higher, WTI above 73, Brent nearing 76.  


Indian stocks snapped 3 days of losses lead by Metals, IT and BFSI names. Indices moved higher by almost 0.40% - 0.44%. Metal index showed a strong rally into record levels gaining close to 5% on China moves. Mid and Small cap indices also gained between 0.40% - 0.90% on renewed interest. 


For the day watch for some consolidation as Asian indices are not reflecting Wall Street optimism at open. For August series that starts today there is a possibility of a range breakout on the back of risk-on trade partially seen in dollar index moving below 92. Watch for Fed Chair's Jackson Hole symposium later during August, some positive news on Covid-19 and development on US infrastructure bill. Any positive outcome out of the above may trigger may help stocks to break out of the long consolidation global markets are going through currently. Traders may continue to focus on rotational trade till the range break out materializes.


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