Hello reader, hope you’re doing well. Gains are expected to continue in early Thursday trades on the strength of bullish cues from Asian rivals, as the US Fed raised interest rates by 25 basis points as expected. Intraday market movement may be sideways as investors seek to rollover their positions ahead of the F&O expiry today. Following the outcome of the US FOMC meeting yesterday, the focus would turn back to global trends and macroeconomics.
Fears of a recession are receding in large part due to data suggesting that inflation is decreasing. As a result, traders are wagering that the Fed will cease raising interest rates, which have been stifling the economy’s potential. US second-quarter GDP is expected to be released today before the market opens, providing the government’s first estimate of spring economic growth following the first quarter’s 2% annual gain. Economists anticipate a small slowdown to 1.8% in the second quarter.
With today being the final expiry in the July series, we can expect a good round of volatility later in the day, with 19800-900 being the key resistance zone. A good low risk trade for today would be – Sell 46200 CE + Buy 46500 CE, a bearish CE spread for the day.
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.