Hello reader, hope you’re doing well. Today’s trading session is expected to begin with caution and a negative outlook due to the SGX Nifty’s weakness, continuing the trend of unpredictable market movements. Despite this, the US markets recorded steady gains overnight. A ray of hope is the decline in US Treasury yields, as investors increasingly believe that the Federal Reserve’s tightening campaign is nearing its end, and some are even speculating the possibility of a rate cut this year.
Important points to note:
- Yesterday’s expiry session was pretty much straightforward until the final hour, where we saw a good bout of selling from 17200 levels on an intraday basis.
- Highest OI concentration seen at 17100, 17200 and 17300 on the CE side, and at 17000 on the PE side.
- Key support on the indices are at 17000 on Nifty and 39000 on Banknifty for the short term. Holding these supports are important, else we can see another selloff towards the previous bottoms of 16800 and 37500 respectively.
With the DNE (Do Not Exercise) facility scrapped by the exchange on stock options, now it’s going to be difficult for traders who do not square off their positions, as physical delivery will be enforced instead of auto-square off by the brokers. So please do keep this in mind and square off your ITM stock options prior to expiry.
On a lighter note, for the weekend, here’s a parody video on the rating of bonds by rating agencies:
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.
Engaging!