Hello reader, hope you’re doing well. Markets may usher in gains in early Tuesday trades amid a sharp rally in overnight US markets even though Asian gauges are trading mixed. Markets are growing hopeful about the US economy and the interest-rate picture, and are counting on a pause in interest rate hike by the Federal Reserve. Fed’s decision to pause on interest rates hinges on the inflation data to trickle in later today, with consensus expecting core inflation to drop to 5.3% YoY. Technically, Nifty’s downside is seen well supported at 18463 mark, while bulls are likely to be everywhere only above Nifty’s all-time-high at 18888 mark.
Important points to note:
- Banknifty again in the zone of consolidation, 43800-44200.
- No fresh trades on options in the current low VIX environment.
- With Finnifty Expiry today, a good low risk trade would be buying 19500 CE with a SL of 6.
- The return expectation from Finnifty expiry has drastically decreased in this low Vix, as compared to Nifty & Banknifty. The premiums to handle an impending gamma move are just not there in Finnifty. Glad we now have a different expiry day for Banknifty.
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.