Pre Market - Snapshot - 04-08-2021


 

US stocks advanced on Tuesday for the first time in three sessions taking S&P to record highs. The better than expected corporate earnings season outweighed the delta virus surge and corresponding fears of a dent in economic recovery. Dow added 0.80%, S&P added 0.82%, Nasdaq added 0.55%. The small cap Russell 2000 underperformed with gains of 0.36%. 


US dollar index traded steady near 92.04, 10 year also traded in a narrow range post Monday's sell-off. Cboe Vix declined to 18. 


Crude futures continued to trade down on fears of delta virus surge. WTI declined to trade just above 70, Brent below 73. 



Indices ended multi-month consolidation to break above the narrow range. Nifty topped 16000 for the first time ever with strong gains from stocks across the sectors. It was all round buying be it IT, Autos, FMCG and Banks. Mid cap stocks also closed at record levels but the gains were slightly muted as compared to large caps. 


For the day watch for some consolidation and move ahead in new record zone. Also watch for RBI MPC meet outcome and global equity sentiment to aid to the bullish sentiment. As indices have broken multi-month consolidation, there may be strong follow-up to the rally that may last for rest of the series. Continue to maintain long bias with revised stop of 15750 on closing basis for rest of August.

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