Hello reader, hope you’re doing well. Today’s trading session is expected to commence with a sluggish beginning as the Asian markets witnessed a decline following the overnight decrease in US indices. The uncertainty triggered by the recent rate hike by the US Fed, along with indications of more rate hikes in the future, has created volatility in global markets. Moreover, on the domestic front, lackluster earning reports and uninspiring participation from foreign institutional investors (FIIs) are believed to be weakening the market sentiment. Additionally, a risk-averse atmosphere is anticipated in anticipation of Friday’s US jobs report.
Important points to note:
- Nifty in a key consolidation zone of 19600-800.
- Banknifty on break of day’s low can see a dip till 45000 levels.
- Fitch Ratings downgraded the U.S.’s long-term foreign currency issuer default rating to AA+ from AAA on Tuesday, pointing to “expected fiscal deterioration over the next three years,” as well as a growing general debt burden.
- What’s going to be fun to watch is the rally and upside in US markets from here, in the upcoming months.
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.