Hello reader, hope you’re doing well. Today’s trading session is expected to display initial positivity, inspired by encouraging signals from other Asian stock markets, despite a mixed performance from the US markets the previous night. Despite recent issues, there are signs that the financial problems facing major US and European banks may be diminishing, instilling some degree of confidence in investors. However, it should be noted that the overall sentiment still appears to be cautiously pessimistic. It is probable that the trading day will continue to be marked by volatility and inconsistency until the Nifty index surpasses its 200-DMA level of 17469.
Important points to note:
- This week’s expiry will be tomorrow, and thus we can expect some high level of volatility today being the pre-expiry session.
- Markets are currently moving inside a small range, with it being 16900-17100 for Nifty, and 39300-39700 for Banknifty. Any break outside of this range on either side would result in a trending move on said side.
- VIX consolidating in the same levels signal less fear, which is good for markets, as we are in a timewise correction phase.
- Highest OI concentration at 17000 levels on both CE and PE side, expiry most likely can be at this level only.
- 40000 CE can be a good bet to short and exit at 0, CMP Rs 45.
“The more enthusiasm there is in the world, the harder it is to live up to people’s expectations and the easier it is to disappoint. When a stock goes from great optimism to the optimism sobering up, it’s very painful for investors.” – Howard Marks
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.
Loved the quote! It goes very well with your phrase – cautious pessimism.