Hello reader, hope you’re doing well. Markets may see a volatile opening as SGX Nifty has been witnessing sharp gyration even as key US indices bounced back sharply from the recent slump to end sharply higher in overnight trades.Going by the recent uptrend, there are chances that the Nifty could re-capture the psychological 18,000-mark. FII buying of local shares has also continued and they bought shares to the tune of Rs 1,653 crore in yesterday’s trades, while sluggish crude oil below $80 a barrel bodes well for India’s economy.However, with the global macroeconomic scenario still looking extremely bleak and local markets having run sharply in recent sessions, profit-taking could be on the cards going ahead.
Important points to note:
- 18000 to act as a key resistance point on Nifty right now, after crossing the previous top of 17870.
- PSE stocks doing great today, REC and PFC top gainers from this bunch.
- Reliance and IT stocks leading the upside today.
- With such a low level of VIX, it’ll be interesting to see whether we get a straightforward breakout above 18000 levels, or a slight dip, increased VIX leading to increase in option premiums, and then the index breaking out above highs.
- Ambuja cements is a good low risk pick, can move up to 470-500 levels after crossing 405-410 levels, chart shared below –
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.