Pre Market - Snapshot - 18-08-2021


 

US stocks fell on Tuesday, major indices pulling back from record highs amidst mixed set of earnings and disappointing retail sales.Dow lost 0.79%, S&P gave back 0.71% and Nasdaq saw a cut of 0.93%. The small cap Russell 2000 continued to underperform with a cut of 1.19%.


US dollar index moved sharply higher near 93.13, 10 year traded flat just below 1.27%, Cboe Vix moved higher near 17.90. 


Crude futures traded flat with small downward bias on dollar strength and demand weakness due to Covid resurgence. WTI traded near 66.60, Brent near 69.  


Gains in IT stocks in the last hour trade took Indian benchmarks to register yet another record high close. Sensex gained 0.38% and Nifty added 0.31% to overnight close. IT and FMCG stocks did the heavy lifting whereas Metal and PSU names dragged the index lower. Mid and Small cap stocks continued to underperform the market on profit booking. 


For the day watch for weekly options expiry related volatility in individual names. The near term consolidation in mid and small cap names may continue for a while before the global risk-on trade restarts. The near term trading opportunities have shifted to large cap names so traders may continue to focus on rotational trades in liquid names for a while. Watch for developments on Covid front and dollar index for some stability in broader markets.

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