Hello reader, hope you’re doing well. The global stock markets are experiencing a wave of uncertainty as discussions surrounding the U.S. debt ceiling continue. This uncertainty is casting a shadow on the SGX Nifty (gap down opening) and keeping investors on their toes. As we await the release of the Fed meeting minutes later today, the balance of the market hinges on this crucial factor. It’s a time for cautious steps, as the true upward journey of Nifty begins beyond the 18503 mark, while Bank Nifty eagerly awaits its breakthrough at 44153. In the midst of overbought technical conditions, it is wise to exercise caution and closely monitor Nifty’s make-or-break support at 18181. These times call for careful observation, but there is a glimmer of hope in the form of net buyers, both FIIs and DIIs at Dalal Street.
Important points to note:
- Within the trading range of 18000-18800, Nifty encounters a crucial resistance at 18500, while its support rests at 18181. Given the overbought conditions, it is essential to approach the market with caution. However, if Nifty manages to break through the 18503 mark, it could potentially reach aggressive targets at 18888.
- Similarly, Bank Nifty’s breakthrough at 44153 has the potential to propel it towards the psychological milestone of 45,000. The net buying of shares by both FIIs and DIIs at Dalal Street serves as a positive catalyst, instilling hope for investors.
- In addition to monitoring market levels, it is crucial to closely watch the fourth-quarter earnings reports today. Companies such as Hindalco, NALCO, Oil India, Cummins India, and others will be sharing their performance, providing valuable insights for investors.
- Apple’s market cap now is 7.5% of the S&P 500. Apple alone is now worth more than the entire Russell 2000. [2000 small-cap companies in the US]
- USA equity markets are looking a lot like our markets was 3 yrs back. Everyone adoring handful bluechips and the index but real juice was in midcap and smallcap segment of the market.
- BHEL being a good low risk stock to add on for further upside from CMP (retest of breakout done), 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.
Very detailed