Hello reader, hope you’re doing well. Volatility is likely to be the hallmark of the day, as investors look forward to the RBI’s credit policy outcome on interest rates and its forward looking comments on economy and inflation. The outlook will give some sense to investors on where the inflation and economy could be heading in the near to medium term. Also, markets will keep a watch on the US inflation data to trickle in the evening today, which could determine the Federal Reserve’s September interest-rate decision and the path forward from there.
Important points to note:
- RBI keeps rates unchanged for now, which is a good sign for the upcoming months in our economy.
- Nifty at a crucial point of 19500 levels, a key pivot point which will decide the trend further.
- Banknifty on break of 44500, can scale down to 44000-43800 levels as well.
- VIX slowly inching up towards 12, good for option sellers here as it results in premiums increasing, creates more opportunities here.
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.