Hello reader, hope you’re doing well. Belated independence day wishes to you all! Markets are expected to open lower in Wednesday trades, as a combination of factors such as rising US bond yields, a slowdown in Chinese demand, and a hawkish Federal Reserve has contributed to risk aversion among investors. Furthermore, FIIs selling shares in domestic markets, combined with the RBI’s upward revision of inflation estimates, has made investors nervous about the markets’ near- to medium-term prospects. Technically, bears have complete control, with immediate downside danger at the 19251 level and anything over the 19757 level fueling an increase.
Important points to note:
- Nifty is at a good base building point here, gearing up for a rally to 20500-21000 in the near future.
- Grasim is a good candidate for longs from current levels, a break above 1860 levels can result in a good rally upto 2000 levels at the very minimum.
- PSU banks are also setting up for a good rally from here for the next few 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.