Hello reader, hope you’re doing well. Thursday’s trading session is expected to begin with a lackluster performance for domestic equities, primarily influenced by a correction in the overnight US markets and a subsequent decline in various Asian indices. The early market sentiment appears to be sluggish or negative, potentially due to concerns surrounding the US debt-ceiling bill, which may face obstacles, and a decline in China’s factory activity, indicating a slowdown in global economic growth. Nevertheless, there is a possibility of a positive turn in investor sentiment and market outlook if the fourth-quarter GDP data exceeds expectations, which could lead to some optimism among investors. From a technical standpoint, it will be considered a sign of strength only if the Nifty surpasses the 18663 level, while the crucial support level for the index lies at 18327. Similarly, the Bank Nifty is expected to find support at 43721.
Important points to note:
- With today being the first expiry of June series, as we also have 5 expiries this month, on a low VIX environment currently, we can see a good consolidation near 18550 and 44000 levels with a slightly positive bias.
- IDFC First bank has continued it’s move on the upside post breakout above 57 levels.
- Overall, better than expected GDP data is again a testimony of India’s economic resilience when rest of the world is on a recession or slowdown path. While external headwinds continue to persist, India is likely to remain the shining star into this year and beyond.
- 44000 PE having the highest OI with 1cr+ and similarly, 18600 CE and 18500 PE having highest OI with around 2.1cr and 2.3cr respectively.
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.
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