Hello reader, hope you’re doing well. The ongoing global rally in stock markets will get a further mild boost from the latest US consumer inflation for June which has come at 3 percent, better than market expectation of 3.1%. Importantly core inflation has dipped below 5% .This is clear indication that the disinflation process is on in the US and might persuade the Fed to pause once again in the July 26 rate decision. This is an important positive global cue.
Important points to note:
- Today, we’ve had both Sensex and Nifty hitting their new ATH levels around 65940 and 19550 levels, respectively.
- Similarly, the broader market rally has resulted in a solid upside and new ATH levels in both the midcap and smallcap indices too.
- Banknifty on the other hand is forming a good flag & pole pattern, a breakout from current levels can take it to 46000 on the upside.
- The rally today has been fuelled by IT, Metals and real estate. Minor gainers are auto, FMCG and banks.
- Come September, we’re going to have three days of expiry trading on every week as the latest NSE circular states that banknifty weekly expiries has been shifted to wednesdays now.
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.