Hello reader, hope you’re doing well. Early Wednesday trading gains may be restricted, despite marginal increases in other Asian indices, due to lower overnight performance in US markets. However, there is a positive takeaway as the Nifty has continued to trade above its 200 DMA at 17,535. Today’s focus will be on the CPI inflation and IIP numbers set to be released later today, especially since the RBI refrained from hiking rates in its recent policy announcement. Additionally, investors will be keenly following the TCS results to be announced after market hours, particularly the revenue outlook in the new fiscal. This is especially important considering the recent downturn in technology stocks and recessionary concerns in the West and US leading to a reduction in IT spends by big international firms.
Important points to note:
- Nifty nearing 17800 levels, can expect some profit booking at these levels, good to add on dips for further upside till 18200 levels.
- Nifty auto looking good for a neat long swing trade.
- Bharat Forge at current levels pretty lucrative for a long, low risk and a good 1:3 RR trade for longs.
- Bajaj Auto at key breakout level, close above 4300-50 levels will open doors for further upside.
- Nifty PSE still remains the strongest sector amongst all out there, poised for a good breakout to form a new ATH.
One key observation in the markets – many people don’t want to trade for meagre returns. They think it’s not worth all the effort. The mentality is such that either go big or don’t bother at all. So, they are already psychologically behind before entering the field.
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.