Daily Report · October 1, 2021

Morning Pulse 01/10/21

  • So a new cockroach has surfaced in financial markets now. Its the debt ceiling. Congress is trying to raise the debt ceiling to be able to pay for govt obligations coming in next month. So obviously Republicans are trying to strong-arm democrats.
  • Turmoil has started, the signs were there now bears are in action after almost 18 months.
  • Lets see where would we stop.
  • Us markets sold off and futures are not looking too good. SGX nifty also trading in deep red.
  • King dollar has risen and sure things aren’t looking bright right now. But commodities are intact.
  • Gold, silver, Copper and others aren’t selling off like in a capitulation event, so the trigger points are mainly political uncertainty and drama around Debt ceiling and Taper schedule.
  • RBI meet is also scheduled next week. RRP markets suggesting to hike rates or at least make Repo and Reverse Repo at par so that parking overnight or weekly funds make sense.
  • So going with Bearish Caution with support at 36500 and 17400.