Hello reader, hope you’re doing well. Early Tuesday trades are expected to see a decline in the markets due to weak global signals, despite the anticipated reduction of key lending rates by the People’s Bank of China. Several factors, including concerns over Chinese economic growth, selling by foreign institutional investors and domestic institutional investors in the previous session, apprehension ahead of Powell’s testimony before the US Congress on Wednesday, and a delayed monsoon, are likely to make investors proceed with caution. The direction of global markets will continue to influence domestic sentiment. Although the Nifty index is near its record high of 18888, there is a possibility of significant intraday volatility negatively impacting market sentiment.
Important points to note:
- Nifty consolidating near resistance zone of 18800-900.
- Banknifty near key support zone of 43400, a break on downside and we can see 43000-42500 on the screen.
- Nifty PSE still being the outperformer amongst all sectors, a good euphoric move till 5200 levels on the index can be seen in the near future.
A small observation: India’s financial landscape is an interesting paradox – either people are okay with FD returns or they are willing to gamble it all in F&O. These two are the largest segment of market, bigger than Mutual Funds, LIC, NPS. We don’t understand risk and diversification.
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.
Standard and just right.