May 23, 2023 – Market Overview

Hello reader, hope you’ve had a good weekend. Had missed out the weekend post and yesterday’s bit as well since I’d been travelling. The positive aspect is that the approaching deadline of June 1st to raise the US debt limit, which could potentially result in a financial crisis, appears to be having minimal influence on the Nifty. From a technical perspective, the Nifty is expected to maintain a favorable inclination as long as it remains above the support level of 18157. The immediate targets for upward movement are positioned above the Nifty 18321 mark, with the ultimate aim being to reach its highest recorded level of 18888. Moreover, once the Bank Nifty surpasses its previous all-time high of 44153, we can anticipate a substantial continuation of its upward trend. Beyond this point, the Bank Nifty is likely to rapidly approach the significant milestone of 45000.

Important points to note:

• Maruti being one good stock to add on to longs, for the short term, out of the auto pack.
• Today being the penultimate Finnifty expiry of the May series, we can expect some good volatility to kick in, in the Financials pack.
• Ambuja cements as mentioned in earlier posts has now given a strong breakout above the 410 mark, those who have longs can exit partially and scale up for higher targets.
• Adani Enterprises has given a decent spike post all the Hindenburg report drama, if stuck on higher levels then some relief for those who bought it very late.
• Large speculators/hedge funds have boosted net short S&P 500 futures positions even more, surpassing 2011 extreme and moving to 2007 territory –

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.