1 week ago
Markets Eye Red Open Despite Constructive Global Risk Appetite
Indian markets may start the day lower even though many overseas markets rose.
The Dow Jones Industrial Average, S&P 500 and Nasdaq all gained.
Several Asian markets also moved higher, led by the Hang Seng Index and KOSPI.
Bitcoin was trading near $81,000, while Ethereum was near $2,506.
Their recent price patterns looked strong, but traders were watching important support and resistance levels.
Bitcoin and Ethereum exchange-traded funds still had net money leaving them during the week.
Higher inflation signals, expensive oil and possible central-bank policy changes could make markets more unstable.
Nischal Shetty said the overall environment for cryptocurrencies remained supportive, but investors should expect risks.
Indian markets were expected to open lower despite gains across major U.S. and Asian indices.
The Dow Jones Industrial Average rose 1.18%, the S&P 500 gained 1.06%, and the Nasdaq advanced 1.40%.
Bitcoin traded near $81,000 and Ethereum near $2,506, with both showing bullish daily structures.
U.S. spot Bitcoin ETFs recorded roughly $135 million in week-to-date net outflows, while Ethereum ETFs saw about $37 million.
Analyst Nischal Shetty said inflation, oil prices, central-bank policy and trade weakness could increase volatility while the crypto backdrop remains constructive.
- Who
- Indian equity markets, global investors, cryptocurrency traders and Nischal Shetty, founder of WazirX.
- What
- Markets were expected to open lower while global equities and major cryptocurrencies showed strength, amid mixed ETF flows and macroeconomic risks.
- Where
- India, the United States, Asian markets and global cryptocurrency markets.
- When
- The update refers to trading conditions through September 2 and the expected market open that followed.
- Why
- The anticipated weaker Indian open contrasted with stronger overseas equities, while inflation, trade data, oil prices, central-bank policy and ETF outflows shaped investor sentiment.
Constructive Market Signals
Downside and Volatility Risks
Global risk appetite
Constructive Market Signals
Rising U.S. and Asian equities, a lower VIX and limited defensive positioning in gold created a supportive backdrop for risk assets and cryptocurrency demand.
Downside and Volatility Risks
Despite stronger global markets, Indian equities showed weakness, and changing macroeconomic conditions could disrupt the positive trend.
Cryptocurrency outlook
Constructive Market Signals
Bitcoin and Ethereum were trading in bullish daily structures, and holding support could sustain buyer control and encourage further upside.
Downside and Volatility Risks
Bitcoin and Ethereum ETF outflows, profit-taking, derivatives positioning and broader spot-market activity could offset institutional demand.
Macroeconomic policy
Constructive Market Signals
A pause by the Federal Reserve could support cryptocurrency ETF flows, while weaker exports and a wider trade deficit could lower growth and yields.
Downside and Volatility Risks
The U.S. services price index at 72.6 signaled inflation, Brent crude above $95 could threaten easing, and possible Bank of Japan tightening could unwind carry trades and trigger volatility.
Key facts
- Expected Indian opening
- Markets were likely to open in the red, with Sensex weakness noted.
- U.S. market performance
- The Dow Jones Industrial Average rose 1.18%, the S&P 500 gained 1.06%, and the Nasdaq advanced 1.40%.
- Asian market performance
- The Hang Seng Index rose 2.03% and KOSPI gained 1.13%; Asian equities were broadly positive.
- Bitcoin
- Bitcoin traded near $81,000, with support at $79,700-$80,000 and resistance at $81,000-$81,500.
- Ethereum
- Ethereum traded near $2,506, with support at $2,460-$2,480 and resistance at $2,520-$2,550.
- ETF flows
- U.S. spot Bitcoin ETFs had roughly $135 million in week-to-date net outflows through September 2; Ethereum ETFs had about $37 million in outflows.
- Volatility indicators
- The VIX fell 5.79% to 14.32, while gold slipped 0.43% and oil rose 0.69%.
Quotes
Nischal Shetty
Founder of WazirX and market commentator
“US services PMI rose to 55.4, supporting confidence and demand for Bitcoin and Ethereum, but the 72.6 price index signals inflation that could keep crypto liquidity tight.”
NDTV
Sources
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