Daily Report · June 30, 2021

Morning Pulse 30/06/21

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  • India VIX is continuously plummeting and has now reached to pre-covid levels.
  • Fear has left the minds of market participants.
  • However new delta plus variant covid cases are now increasing across India. In US and Europe Delta Plus cases are also accelerating. This may be a sign of caution.
  • Repo markets are hot, yesterday ’74 COUNTERPARTIES TAKE $841.2B AT FED’S FIXED-RATE REVERSE REPO’. Fed’s 5bps increase in RRP rate has indeed attracted the attention of probably money market funds and other parties. Who doesn’t want risk free FREE money!
  • S&P and Nasdaq closed at all time highs. Now the only news or event markets need to hear about the decision to taper the bond buying program.
  • Commodities are however cooling off from highs.
  • Shiny metals Gold & Silver are consolidating in a range.
  • Indian Markets Closed lower yesterday. Nifty50 ping ponged between 15450 to 15900 for the whole month of June and Banknifty between 35700-34000.
  • If these ranges break, we can have a nice trending move, till then only straddles and strangles will rule.