Hello reader, hope you’re doing well. There is a positive outlook for early trading on Tuesday as optimism from other Asian markets is expected to influence local investors in a positive manner. Despite the closure of US markets on Monday, the focus of trading still revolves around the agreement between US President Joe Biden and Republican Kevin McCarthy to raise the debt ceiling to $31.4 trillion. The vote on this agreement is scheduled for Wednesday. Additionally, the continuous buying by Foreign Institutional Investors (FIIs) and the anticipation of a pause in the Federal Reserve’s interest rate hike could contribute to sustained buying momentum. From a technical perspective, attention will be on Nifty’s record high of 18888, while Bank Nifty has the potential to outperform, targeting the psychological level of 45000.
Important points to note:
- With today being the final Finnifty expiry session, we can see some good spike in volatility post 1pm.
- Nifty Infra on the verge of a good breakout.
- Similarly, REC also inching up slowly, a good first target of 150 levels, post which a breakout can lead it to new ATH levels after a good 14 year consolidation.
- Nifty at a key resistance zone of 18600-18800, we can see a good upside once there is enough unwinding in 18700 and 18800 strikes on the CE side for this week.
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.