Hello reader, hope you’re doing well. Overnight rally in the US markets and early gains in Asian gauges could fuel optimism in local shares, as investors are likely to follow suit and maintain the buying momentum. However, caution may prevail at a later stage due to focus on two big catalysts – the US June CPI numbers to be released on Wednesday, and the likely hike in interest rates by the US Fed at its FOMC meeting on July 26. The June quarter earnings will also be keenly watched in the backdrop of an uncertain global environment and a slowdown in discretionary spending by clients. For Nifty, supports are placed at 19300-200 zone.
Important points to note:
- Nifty inching upwards near it’s most recent top in the 19500 zone.
- Nifty Auto has been one of the top outperformers along with PSE in the last 2-3 months.
- IT stocks gearing up for a good rally from current levels.
- With today being the expiry on Finnifty, expect a good spike in volatility in the afternoon sessions.
- In the US markets, we are seeing a healthy rotation today with many of our recent trades following through and building on previous gains as well as a number of fresh new breakouts working. The Nasdaq seems to be getting tired, but beneath the surface we are gaining traction in select stocks as the rally appears to be broadening a bit.
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.