Hello reader, hope you’re doing well. In the early hours of Tuesday trading, the local market sentiment is expected to be dampened by the weakness observed in most Asian indices and SGX Nifty, despite the sharp rebound of key US gauges in the previous night. Even though the overall mood could remain choppy following the slump from yesterday, IT stocks may once again receive attention due to the poor earnings performance of major IT companies and potential challenges ahead as the US and European markets experience a possible recessionary trend. From a technical standpoint, Nifty’s trading is likely to be volatile and choppy. Traders should keep an eye on the support level of its 200 DMA at the 17,568 mark and the main obstacle at the 17,863 mark. Aggressive buying can commence once the 17,863 mark is surpassed.
Important points to note:
- Nifty can take a good support and form a higher bottom around it’s 200 EMA mark of 17500.
- DLF being one of the major outperformers in realty space.
- PSU banks ready for a good small rally, poised for a breakout above 4000 on the CNXPSUBANK index.
- Reliance along with IT stocks dragging down nifty today, a bounce here would give a relief rally in the index.
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.