Pre Market - Snapshot - 20-08-2021

 



On Thursday US stocks traded mixed to steady following steep losses from the previous day driven by jitters over a potential shift in monetary policy that might remove some of the stimulus underpinning equity markets. Dow continued to trade down with a cut of 0.19% but both Nasdaq and S&P closed in green with gains of 0.11% and 0.13% respectively. The small cap Russell 2000 extended its underperformance with cuts of 1.22%. 


US dollar index moved to 2021 highs on Fed minutes outcome that indicated at an early taper. The benchmark moved near 93.58. Cboe Vix also moved higher near 22. US 10 year declined marginally near 1.24%. 


Crude futures saw a sharp sell-off over two days on dollar strength and slowing growth to 3 month lows. Brent fell near 66.50 and WTI near 64. 


Indian stocks fell on Wednesday pre-empting Thursday's global fall. Banks and metal stocks were amongst the prime losers that took indices down by 0.28%. Cement and NBFC stocks gained in an otherwise lack-luster market. 


For the day watch for some stabilization post opening blues for stocks. The Jackson Hole symposium and movement in dollar index may determine the near term movements in stocks. As indices consolidate just below the record highs, there are lots of opportunities opening up in mid and small cap names where the recent correction has taken out the froth that got built in July. Accmulate stocks beyond popular names over next few weeks for a decent outperformance over next 6 to 9 months.

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