Hello reader, hope you’re doing well. Global market cues remain deficient. Global stock markets are currently under pressure from two factors: One, the US Fed minutes show that one more rate hike in this rate-hiking cycle may be required to keep inflation under control. Two, Chinese macro data show that the economy is slowing faster than previously anticipated, weighing on global economic growth. In this context, the Indian market is unlikely to sustainably break out to newer highs and decouple from the rest of the world. A dramatic correction, on the other hand, is unlikely.
Important points to note:
- PSU banks going strong for today, with PNB being one of the top outperformers for the day.
- Nifty looks likely to continue consolidation in the 19300-500 zone.
- India VIX at 12.5 levels is a very good sign for option sellers, finally premiums are much higher which helps in gaining well on trades once we have another drop in VIX in the future.
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.