Hello reader, hope you’re doing well. The local benchmark indices may face challenges in early Wednesday trading due to weak signals from SGX Nifty, which was impacted by the overnight decline in the US markets. This could adversely affect market sentiment, although banking shares are likely to be closely monitored ahead of the RBI’s monetary policy announcement. Analysts predict that policymakers may increase the interest rate by 25 bps to tackle inflation. Meanwhile, gold prices in the global market have reached a 1-year high of USD 2025 per ounce. At the same time, the yield on the 10-year US Treasury note, which is viewed as an indicator of worldwide borrowing costs, has dropped to a six-month low of 3.37%.
Important points to note:
- Nifty expected to face some resistance at 17500 levels, which is a confluence of the 50-EMA and 200-EMA levels on daily charts.
- On overall basis, Banknifty looks bullish if it gives a closing above 41300 levels.
- PCR at 1 right now on Nifty, hence can expect a good consolidation at these levels.
- Bajaj twins and HDFC twins leading the markets for today, need overall market breadth to improve for more upside.
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.