Hello reader, hope you’re doing well. Today’s expectation is a continuation of the short covering we’ve seen yesterday, and what a brilliant expiry session it was. A neat 300 points rally played out on Nifty from the lows and definitely would’ve trapped CE writers at lower levels. The Credit Suisse crisis is becoming less of a concern as the Swiss Central Bank has decided to inject funds into the troubled company. Additionally, WTI oil prices have fallen to $68 per barrel and the Nifty is currently oversold, which could result in further relief rallies. It is also possible that the US Fed may not increase interest rates sharply due to the current economic slowdown and the potential for a recession in key economies.
Important points to note:
- Nifty holding 16800 is key, else it would bring in more selling in the markets.
- NTPC and Powergrid have remained the strongest outperformers here.
- These levels are good with valuations being pretty cheap for longer term investments in the market.
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.