Hello reader, hope you’re doing well. Markets are likely to see a gap down opening in Monday trades tracking weakness in other Asian indices as risk aversion is likely to be the preferred theme. Denting sentiments will primarily be reports of ruling party BJP’s setback in Karnataka assembly elections. Also, weak Wall Street cues in the backdrop of a worse-than-expected reading on consumer sentiment could also keep investors cautious. India’s WPI inflation numbers to be announced later this week will also be keenly watched given the uncertainty over the future course of interest rate direction. Technically, Nifty is likely to be in a trading range of 18000-18800 zone.
Important points to note:
- Nifty inching closer to the breakout point of 18400 levels.
- Nifty auto has given a very good breakout and is cruising smoothly towards new ATH levels.
- Axis bank has given a clean run up to 910+ levels post breakout from 890 levels.
- Highest OI at 18300 levels on the PE side, 1.25cr+ at this point, to act as key support point on 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.