Hello reader, hope you’re doing well. Early optimism is seen on Dalal Street thanks to positive global cues, but intra-day volatility may persist given the recent downward trend. The US debt ceiling could be the buy-the-rumour-but-sell-the-news-event. The recent uptick has been faster despite any major positive development in global space, hence investors are redeeming their equity bets to avoid getting caught off guard in case of any negative surprise popping up going ahead. Dalal Street ignored the other silver lining as FIIs continued their march in the current month, having bought shares worth Rs 17,490 crore. Technically speaking, only a move above the 18321 mark is needed to negate the bearish bias.
Important points to note:
- Nifty taking support around 18050 levels and bouncing back from said levels.
- Banknifty just away from a new ATH level by around 1% – 1.5% on upside.
- Highest OI concentration at 18200 CE, with 1.2cr+ on said strike, and 90L+ on 18000, 18100 and 18200 strikes.
- Global equity markets are on the verge of initiating a significant upward movement. The next year holds great potential for the majority of global markets, offering excellent prospects. In the worst-case scenario, we may witness 1-2 months of further consolidation. However, we are approaching a critical juncture where the bull/bear cycle is expected to shift favorably.
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.