Hello reader, hope you’re doing well. Early trades today are expected see a boost in local market sentiment due to a strong rebound in the overnight US markets. This comes as concerns over US banking issues are expected to subside and Credit Suisse’s acquisition by UBS is viewed positively, easing concerns about the global banking sector. While attention will turn to Wednesday’s FOMC decision, where a 25 basis points hike is likely, the biggest challenge for our stock markets is the ongoing selling by the FII camp, which sold Rs 2,546 crore on Monday.
Important points to note:
- Nifty is consolidating near it’s key support level of 16800.
- Highest OI concentration at 17200 levels on the CE side.
- India vix not giving a huge spike is key to reduce fear amongst investors.
- Nifty IT on the verge of a breakdown, more selling to be seen below 28000 levels.
Lots of late entrants to the markets would be complaining about not being able to make good returns now. In 2020 & 2021 whichever stocks you bought would’ve made you money. In last 18 months it has been pretty tough to keep capital intact for 99% of the people. Many of those multibaggers have become fallen angels, and many of them will stay there. We need to acknowledge the role of luck in 2020-21 and lack of skills in last 18 months. How much time has been wasted in trading stocks? Being invested in a simple MF would’ve helped by letting one invest in one’s career, health or family. If you’re passionate, then yes, keep the learning process going, but seeking stock tips from social media will not get you anywhere.
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.