Hello reader, hope you’re doing well. Markets are likely to see a weak opening on the back of bearish global cues, as the rising US bond yields continue to create havoc in world currency markets, fuelling a sell-off in equity markets. While depreciating currency continues to spook markets, the relatively weak macro-economic scenario like rising domestic inflation, FII fund outflow, Chinese slowdown and the US Fed signalling more rate hikes to contain inflation can prompt investors to book profits.
Important points to note:
- Nifty still in it’s corrective phase, but anytime soon we can see a good bottom formation and a quick euphoric rally towards new ATH levels.
- This expected rally can take some time to play out, so traders have to be patient.
- PSE stocks have consolidated for a good 2 weeks now, can expect a continuation of the rally and a good upside in stocks like GAIL, Powergrid and BHEL.
- Banknifty being much stronger in this fall, with metals dragging down nifty.
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.