Pre Market - Snapshot - 30-08-2021

 


Stocks moved sharply higher on Friday heading for a winning week as Federal Reserve Chairman Jerome Powell prepared the markets for some gradual pullback, saying it's likely to start tapering its $120 billion in monthly bond purchases this year.


The Dow Jones Industrial Average was up 0.69%, S&P 500 rose 0.88% to hit a new high, Nasdaq  added 1.20%, also hitting a new record during the session. The small cap Russell 2000 gained the most adding almost 2.85%.

US dollar index and 10 year fell sharply post Fed testimony, dollar index closed well below 93 at 92.68, 10 year declined below 1.31%, Cboe Vix also fell 13% to 16.39. 


Crude futures traded strong, Brent above 73.50, WTI above 69. 

Indian stocks traded strong ahead of Fed testimony with most sectors contributing to gains. Sensex was 0.31% up and Nifty closed 0.41% higher. Broader markets outperformed as the BSE Midcap index closed with a gain of 1.04 % while the smallcap index rose 0.93%.


For the week watch for some gains in benchmarks with Nifty aiming at next psychological level of 17k as most of the near term market moving news flows like central bank actions, Q1 results calender, impact of rising Covid cases etc are out of the way. Also watch for action in broader markets that have been underperforming the main indices for a while. Avoid chasing stocks near 17k and book some profits if carrying near term positions.

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