Posted By : Kishore B.S
Today was a lack luster day. Nifty was range bound in 30 points for the whole day. The US markets corrected about a percent yesterday. Today Nikkei was up 100 points in the morning and eventually closed in red. Asian markets were mixed with some being in positive and some in negative.
Europe is down 1 percent but one should not forget that on Monday Europe was closed. So, what we see today is the reaction of Friday’s US data. Still we see that Europe has recovered from their lows immediately. Now all the world markets have reacted to the bad US data. The trade data by China provided a bit of support to the markets. Now i am not saying here that all the problems have been solved but on the back of positive Chinese data and the major corrections all over the world the markets may see a rally tomorrow. The markets have been forming lower lows and that trend is expected to continue. A rally can happen here but it will fizzle out soon. The trade from here should be to short on every rally.
We have a lot of events lined up. The results of this quarter, Chinese GDP data, data from US etc. Earnings are expected to be on the soft side. The problems in the fundamentals still remain. Given that a rally in the markets is expected tomorrow.
(Inputs Mr. Shubham Deva, An Stock Market Institute Associate, IIT Kanpur)