Pre Market - Snapshot - 04-10-2021



 US stocks moved higher on Friday snapping five quarter winning streak on Thursday. Dow gained 1.40%, S&P 500 rose 1.10%, Nasdaq closed  0.80% higher. Small cap Russell 2000 outperformed with gains of close to 1.69%. 

After hitting multi-month high close to 94.50 on Thursday, $ index eased to trade below 94. Cboe Vix also fell near 21 (though still trading at elevated levels) and US 10 year also dropped sharply near 1.45 from the high near 1.55% during the week. 


Crude futures continued to trade near flat zone with positive bias, Brent moved in and out of 79, WTI traded above 75.50.


Following global cues, Indian indices continued to trade down, Sensex closed  0.61% lower, while Nifty was down 0.49%. Pharma, media and metals closed higher. Banks, financials, and IT were top drags. Mid and Small cap stocks showed some resilience to close mildly in green. 

Traditionally the period after September remains positive till the end of the calendar and it seems the risk-on sentiment made a small comeback on Friday, may be an early sign of the same. Watch out for some consolidation with an upward bias for global risk assets in first few days of October for confirmation of year end bump up thesis. Traders may continue to build positions if there are visible signs of stabilisation and fresh breakouts in broader markets by the end of the week. We continue to prefer positional trades for economy facing / pharma names and rotational trade for Metal, IT and  Fmcg names for the current quarter.

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