Hello reader, hope you’re doing well. Markets may see a cautious opening with a slightly negative bias in Wednesday trades amid weak global cues, with sentiments a bit dented on fears that a debt-ceiling deal could be derailed. Vote on the deal to raise the USD 31.4 trillion debt ceiling could be announced later today. However, the key positive takeaways are Nifty trading at a 5-month high and, most importantly, the sequence of higher highs is intact, while Bank Nifty has scaled fresh all-time-highs, RIL market cap has surged past Rs 17 lakh crore mark. Investors will also keep an eye on the Q4 GDP numbers to be announced later today, which will provide some sense on where the economy is headed in the near to medium term.
Inportant points to note:
- Nifty and Banknifty post gap down opening today, near key support zones of 18500 and 44000 respectively.
- PCR on Nifty almost at 1, suggesting a neat rangebound market.
- Top gainers for the day being Nifty Pharma and Nifty IT, mostly short covering rallies in these baskets.
- Crude oil is currently at a key support level of 5700, and can consolidate in the range of 5600-6200 for a while until it resumes it’s next leg of rally.
- REC and PFC top gainers in the PSE basket post fresh breakouts on charts yesterday, continuing with the same good momentum today too.
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.
How do you decide a rally has ended?