Hello reader, hope you’re doing well. Yesterday, our markets faced renewed pressure after experiencing a relief run in the previous session. The Nifty ended the day near 17,300, with selling observed in several sectors including IT, Auto, FMCG, and Finserv. Despite mixed global cues, the market began the day with a lackluster performance and continued to witness selling throughout the day, ultimately erasing all the gains made during the previous session and ending near the day’s low levels. Plus, as it was the first expiry session of the month, volatility as expected played a huge part in yesterday’s move.
Important points to note:
- Investors on Wall Street were greeted with a positive surprise on Thursday as stocks, which were initially on a downward trend, managed to recover and end the day on a high note. Meanwhile, gains in U.S. government bond yields were curbed as investors processed the release of robust economic data and indications from the Federal Reserve of a measured approach towards interest rates.
- U.S. jobless claims numbers fell, while Atlanta Fed President Raphael Bostic said that he favored “slow and steady” quarter-point U.S. rate increases to limit risk to the economy. This helped the US markets rally post an initial decline.
- SGX nifty indicated a positive opening and now we see that once Nifty crosses 17500, we can see a good short covering rally from here.
- As short covering is expected, we will most likely see a good bounce across all sectors, post which the stronger sectors will lead the market from here.
- Crossing 17700 on Nifty is key for resistance to be broken, but a trend change will be seen only post levels of 18200 being crossed.
- ICICI bank looks good for a short term bet, poised for a clean breakout from 875-880 levels. On a longer timeframe, a target price of 1000 can be achieved by this stock once November 2022 highs of 960 levels are crossed.
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.
Very detailed and engaging! The bit about US bonds and the Atlanta Fed President’s POV causing a positive sentiment was relevant, and kept up the momentum of the blog content!