Hello reader, hope you’re doing well. Negative sentiment across the global equities could see local benchmarks struggle in early Thursday trades, with profit-taking likely to continue after yesterday’s FOMC minutes meeting hinted that another rate hike in July is on the table. Other factors that could weigh on sentiment are escalating US-China tensions, drop in industrial activity in China in June, and overbought technical conditions back home. Technically, for Nifty, the long term target stands between 19500-19750, with aggressive targets at 19900-20000 zone. In case of any sharp decline, the index could find support at 18927. Even with these expectations, we’ve seen Nifty slowly scale up to new highs today, creating ATH levels.
Important points to note:
- Nifty on one hand is gaining, mainly led by pharma, realty, media and oil & gas sectors.
- DLF and Britannia being top gainers for today, with both hitting new 52 week highs respectively.
- The Goods and Services Tax (GST) Council in its next meeting on July 11 is likely to clarify that the supply of food and beverages at cinemas is taxable at the rate of 5 percent similar to restaurant service, which will lead to reduced prices on movie popcorn.
- One of the silent outperformers in banking space since covid lows has actually been Indusind bank, and it has almost gone up by 6x from lows –
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.