May has started with major weakness across Asian markets. Markets assumes that Japanese Central bank will come with more stimulus. As we have mentioned in the past the room for further stimulus was limited for Japan . And the central bank wanted to hold on to it till it can !!
However market positions had to unwind and thus Yen strengthened against USD. This caused major sell off in the Japanese equity market as most of the companies depends on exports for their earnings .
We will also have Australian central bank policy decision today , which will be keenly watched by the market .
India equity markets may soften in line with other Asian markets.
The immediate triggers that can support the Indian market are :
Nifty traders should cut their long positions and wait for the market to stabilize.
Commodity stocks may cool off after the recent rally .