Hello reader, hope you’re doing well. Today, the markets are expected to have a slow start and a slightly negative bias due to the flat closing of overnight US indices. Despite the traditional “Sell in May” lull, there may be some upward movements for Nifty, although they could be limited. Nevertheless, there is positive news that the Chinese economy has grown by 4.5 percent yoy in Q1 of 2023, the strongest expansion since Q1 of 2022. According to the technical analysis of domestic indices, Nifty is likely to experience volatility and instability, and the most significant support level to monitor is at the 17,578 mark, while the benchmark index could only demonstrate strength if it surpasses the 17,863 mark.
Important points to note:
- Nifty IT continues to drag down Nifty 50 for the third day in a row, post Infy’s quarterly results.
- Midcap and smallcap sectors doing well comparatively to largecaps.
- Stronger sectors for the upcoming few months continue to be PSE, PSU banks and Realty, along with little weightage for FMCG and Auto too.
- REC poised for an interesting breakout from current levels, good low risk long trade here.
A key quote to remember by Charlie Munger, for today –
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.
Hi, super detailed and nice! And the apt quote was just icing on the cake.