March 10, 2023 – Market Overview

Hello reader, hope you’re doing well. As expected, we had a straightforward expiry session yesterday with markets finding resistance near 20-EMA levels, and correcting from there. Early trades today are expected to be a decline in the markets, with the possibility of further drops due to weak global indicators. The markets are currently pricing in a high likelihood of a 50 basis points rate hike by the US Federal Reserve in their upcoming meeting, which has reignited fears of a recession. The focus will also be on the US jobs report, which is set to be released late in the evening today. Economists are predicting that the US economy will have added 225,000 jobs, a decrease from January’s 517,000. However, there is some comfort for the markets in the form of a weakening US Dollar, as well as a dip in the 2-year US Treasury yield to 4.809% and the benchmark 10-year Treasury yield to 3.88%.

Important points to note:

• The selling we’re seeing is on an overall basis considering the sell on rise structure in the markets, positionally.
• On an intraday level, we can expect some bounce later during the day once markets touch the oversold levels.
• Overall, the stronger sectors remain to be FMCG, Auto, and PSE even during this fall, when compared to all others with the selling we’re seeing in the markets now.
• Nifty has again come near its previous bottom of 17300 levels, crossing this on downside would open the gates to 17000 and 16800.
• In times like these, it is important to keep cash at the ready to accumulate good quality stocks for long term investment purposes.
• Holding 17300 on closing basis important for Nifty now.
• PCR currently at 0.66 on weekly expiry.

As always, risk management is key, and a proper system in place prevents one from losing out too much, in case of outlier events. Have a good trading day, and may the force be with you!

Disclaimer: this post is for educational purposes only, we are not SEBI registered analysts. Trades mentioned here are not trade recommendations. Equity Investments are subject to 100% market risk, please consult your financial advisor before investing.