Hello reader, hope you’re doing well. Despite a drop in the US markets on Tuesday, other Asian indices are giving positive signals, leading to expectations of a steady positive start in the markets. However, caution is expected to prevail due to the expiry of March derivative contracts today, a day earlier than usual because of the holiday, tomorrow. On a positive note, yesterday’s session saw FIIs become net buyers by Rs 1,531 crores. From a technical perspective, if the Nifty falls below the 16827 mark, there may be choppy waters, while smooth sailing may only be seen above 17221.
Important points to note:
- Nifty very likely to expire around 17000 levels for today. Highest OI concentration seen at this level only on both CE and PE sides.
- As mentioned earlier, stay away from IT and metal stocks, these two sectors are due for a good correction, which has already started from last week.
- Nifty FMCG yet to give a breakout from current levels, consolidating in the same range, while overall markets are seeing a healthy correction – this indicates good strength in this basket, but stock specific moves are the ones to look out for, HUL and Britannia being the strongest in terms of price action and chart structure here.
- Same goes for Nifty PSE too – even though we saw a breakout above 4550, in the short term the index has reversed from higher levels but is still consolidating in the same range, forming a higher bottom too. Structurally one of the strongest sectors in the market right now, poised to lead from front once a rally begins.
- With today being the final expiry session of the March series, time to expect some volatility as usual, but more or less it is expected to be a rangebound day movement on the indices.
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.