Hello reader, hope you’re doing well. The state of the US economy is having a significant impact on equity markets globally, including India. Recent economic data in the US indicates a slow process of disinflation, which has caused negative reactions from US markets. As a result, the 10-year bond yield has risen sharply, and with the US markets correcting last night, ours is no exception for a smaller correction at the very least. Despite the current negative trends, the Indian economy’s growth prospects remain strong, and sectors driven by domestic demand are expected to perform well in the coming years.
Important points to note:
- SGX nifty opening around 0.5% down today, plus we are likely to see some selling pressure throughout all sectors today.
- India VIX is up by 5.2% today as well, which indicates a possibility of increasing volatility.
- Current chart structure on Nifty remains to be sell on rise, and this will change only after it crosses 18200-300 zone.
- Important point to note here is that Nifty has not given a close below 17600 till date on closing basis, and this low must be held if we have to see a trend change.
- PCR again at 0.58, which usually is a highly bearish scenario, but with tomorrow being the monthly expiry, whipsaw moves are something to be expected.
Have a good trading day, 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.