Hello reader, hope you’re doing well. In the early trades today, it is expected that domestic markets will experience slight upward movement. This positive trend is influenced by strong global signals, following US President Biden’s optimistic outlook on reaching a debt-ceiling agreement. Despite yesterday’s weak stock market performance, there was a positive aspect as Foreign Institutional Investors (FIIs) continued to be net buyers on Dalal Street. They have purchased shares worth Rs 16,520 crore in the current month. From a technical standpoint, the Nifty index may show increased strength if it surpasses the 18473 level, while support is anticipated around the 18079 level.
Important points to note:
- Nifty has opened about 0.5% up today with a gap, on intraday levels we can see the gap being filled, which is a retracement upto 18180 levels.
- Banknifty consolidating at a level which is just shy of a new ATH, markets facing slight resistance here.
- Today being the penultimate expiry session of the May series, we can expect a good bout of volatility today.
- Highest OI concentration at 18200 PE and 18300 CE levels, to act as range for today’s expiry.
- Similarly, 44000 level is expected to be a key resistance point for Banknifty today as it’s got almost 1.25cr OI at this strike.
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.
What is your take on the impact of President Biden’s backing out of the QUAD summit, and also an impact on the markets? Now that you mentioned about the debt ceiling agreement, this seemed in connotation to that.