Hello reader, hope you’re doing well. Early trading is expected to place key stock market indicators in a precarious position prior to the upcoming US Federal Reserve meeting on interest rates. Investors are likely to approach with caution due to concerns about a potential recession and decreased growth if there is an additional rate increase, which is causing global equity markets to decline. Overnight, the fear of recession and a stronger US dollar resulted in a significant 5% drop in oil prices, bringing it down to $72 per barrel. As for the Nifty index, the support level is currently set at 17951, with intraday support anticipated at the 18027 level.
Important points to note:
- Nifty as mentioned yesterday sees a resistance at 18200 levels and has retraced slightly from there.
- Banknifty on the other hand is much stronger here, and crossing 43500 levels can push it up to 44000 levels and higher.
- Nifty IT being one of the main draggers of the market here.
- One of the most consistent and silently gaining stocks in the largecap space is L&T – in the last 3 years, this stock has consistently gained since the beginning of the Covid rally, chart shared below –
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.