Hello reader, hope you’re doing well. In early trades, local market sentiment may be impacted by early weakness in several Asian indices, which could prompt investors to engage in selective profit-taking after the recent increase. However, there is a significant positive catalyst in the form of eased recession fears in the US. WTI Oil has surged above $72 per barrel, rebounding from a one-and-a-half-year low of $63.64 on May 4, as concerns about an economic downturn in the US economy have eased. Additionally, investor sentiments will be bolstered by the fact that FIIs have purchased shares worth Rs 2,124 crore, while DIIs have also bought shares worth Rs 245 crore.
Important points to note:
- Nifty is strongly sustaining above the 18200 mark, which indicates more bullishness in the short term, with 18000 acting as key support on the downside now.
- The index has also crossed the year’s opening mark of 18131.7, which is also a good indicator that we can see a good move further on the upside to 18800 and above.
- Post today’s breakout, path on upside clear till 18600.
- Today, Nifty Auto hits a new all-time high crossing 13550 levels, and hope everyone who had added auto stocks to their portfolios are benefiting from this.
- Tatamotors being one of the top gainers in the auto pack, a clear outperformance post breakout, chart shared below –
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.