Hello reader, hope you’re doing well. The positive momentum in global markets and expectations of a more dovish approach from the Federal Reserve are likely to lead to a strong opening for markets. Additionally, the recent trend of Foreign Institutional Investors (FIIs) becoming net buyers with a substantial investment of Rs 3086 crore in the previous trading session could boost market sentiment. However, there are negative factors to consider. Skymet Weather’s forecast of a bleak monsoon in India for the next month and China’s ongoing struggles in the retail sales and industrial production sectors might make investors cautious and result in selling pressure in the future. In terms of the Nifty index, its crucial support level is at 18553, and a breakthrough of its all-time high at 18888 will be necessary for any upward movement.
Important points to note:
- With current ultra low VIX environment, better to skip on option sell trades for the time being.
- Bharat Heavy Electricals Limited (BHEL) and Volvo Eicher Commercial Vehicles Limited (VECVL) signed an MoU for taking up a “Joint project for development & deployment of Type – IV Cylinders (Hydrogen/CNG) in Commercial Vehicle Segment”. Good news for BHEL, can see a good upside from here.
- Banknifty’s key resistance point for today being 44000.
US equity speculative futures positioning ticking up from near-record lows as the market runs away, minds are starting to change as FOMO kicks in and price speaks louder than macro Looking more like 2011 (vs 2007)
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.