Hello reader, hope you’re doing well. Expectations for a challenging start to Thursday trading on domestic stock exchanges are high due to the weakened SGX Nifty following a mixed overnight closure of US markets. Although the Federal Reserve chose to maintain the current interest rates, the possibility of a 50 basis point increase in key rates later this year remains open, especially if inflation remains stubbornly high. This potential development could disappoint investors who were anticipating a more accommodative statement. Consequently, the market may experience turbulence and significant intra-day volatility due to lingering uncertainty surrounding policy rates. Nevertheless, selective purchasing is expected to persist as a prevailing trend. From a technical standpoint, a market rally is anticipated only if it surpasses the previous all-time high of 18888, while the critical support level for the Nifty index is identified at 18553.
Important points to note:
- With today being expiry day along with very low VIX levels, we can expect a muted rangebound day, but with regular gamma spike sessions post noon.
- 18800 level to act as key resistance point on intraday 5 min timeframe.
- There’s a good chance of Banknifty closing near the 44000 zone for expiry today.
- Tata Steel is one of the names in the metals basket that can actually give a good return (investment trade only, time period >3 months), good to add on dips.
An interesting read for this week, on how inflation is expected to revert back to it’s mean, and how we can see a reversal in numbers from here on out.
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.
Interesting.