Hello reader, hope you’ve had a good weekend. Traders should prepare for a turbulent and unpredictable trading session due to the instability in the Gift Nifty index and the continued losses experienced by Wall Street on Friday. Concerns among investors have risen regarding the possibility of the Federal Reserve initiating another round of interest rate hikes during its FOMC meeting on July 26. Additionally, market attention will be focused on India’s upcoming announcement of CPI inflation numbers on July 12. Furthermore, the release of US inflation figures for June, scheduled for Wednesday, will be closely monitored as any increase could provide justification for the US Federal Reserve to raise interest rates. The corporate earnings season for the quarter ending June FY24 will also command significant attention, particularly as IT giants TCS and HCL Technologies are set to announce their results on July 12, followed by Wipro on July 13. From a technical standpoint, the Nifty faces a substantial obstacle at its historical peak of 19524 levels.
Important points to note:
- The top gainers today are banks and auto stocks, while we’re seeing Nifty IT and Realty pulling down the markets overall.
- It’s a good time to watch out for PSU banks now, and can be added on further dips to capitalize on the next rally we will see in the markets.
- Maruti and Hero Motocorp have given excellent breakouts in the last few sessions, good time to book profits partially.
- Bharat Forge has been in a lengthy consolidation for the last two years. A breakout above 900 levels and sustaining comfortably above this zone would lead to a fresh rally to new all time highs.
- Similar bullish view on Bosch as well. Looking good for upside upto 21000 from here.
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.
Seems like a great summary of the current economic situation as well.