Hello reader, hope you’re doing well. Holi wishes to you and your family, from Thetaflo! Markets are expected to retreat sharply in early trades Wednesday on the back of weak global cues after US Federal Reserve Chairman Jerome Powell made a hawkish statement and indicated that interest rates are likely to be higher than previously estimated in view of higher inflation. The two big catalysts for the markets are IIP data and the US jobs report to be released on March 10, which would provide some near-to-medium term direction to the investors. Technically, Nifty’s immediate make-or-break support is seen at the 200-DMA at 17,414 mark.
Important points to note:
- Nifty on its daily timeframe charts rebounded from the 20-EMA levels which was expected to be a key resistance point in the short term.
- Current trend in short term of Nifty is still sell on rise only, which will change only after nifty crosses 18200 levels and sustains above it comfortably.
- A close above 17700 is key for Nifty today considering latest updates from the Fed and other US macroeconomic data.
- At the moment, 17600 and 17500 to act as key bottoms for the index to hold, to prevent further downside.
- As mentioned earlier, Nifty PSE being one of the strongest sectors in the market, has given a good breakout, it is the first sector to hit a new ATH (all time high), and 4500-4520 levels will become the new support levels for the short term outlook.
- NTPC and Powergrid being the stocks yet to give a major breakout in this basket, PFC being the first out of the lot to lead by example.
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.
Super! I like how well-rounded the post is, it seems to cover an overall perspective!