Hello reader, hope you’re doing well. Today, we’re seeing a gap down on opening, due to the weak performance of the US markets overnight following the Federal Reserve’s decision to raise interest rates by 25 basis points, in line with market expectations. Nevertheless, many of the Asian markets are displaying strength after the Federal Reserve softened its stance and suggested that there may only be one more interest rate hike by the end of the year. Despite this positive news, local traders are concerned about continued selling by foreign investors, which is causing a significant amount of uncertainty.
Important points to note:
- Today being the penultimate expiry session of the March series, we can expect a good amount of volatility to be seen in the markets.
- Highest OI concentration seen at 17200 CE and 17100 PE on Nifty.
Risk management is an art. People preach it as holy grail, but to get it right takes experience. It’s more than placing similar SL on all your trades. Some trades or market situations require more firefighting than usual. Otherwise the cost of risk management becomes more than risk itself.
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.
Nice and straightforward!