Today Market is giving insights that reflects market’s cautious stance as they await the Fed’s decision on interest rates, while inflationary pressures and employment issues persist in India. Given the current economic environment, the RBI is unlikely to follow the Fed in cutting rates, as India’s high inflation—driven in part by climate-induced disruptions such as floods—remains a significant concern. The upcoming super Typhoon Yagi in southern China also poses risks to global supply chains, potentially affecting neighboring economies, including India.
Key Observations:
1. Reliance’s Impact on Nifty:
– With Reliance’s bonus issue announcement and a 1.50% intraday drop, its price action will be crucial in maintaining Nifty’s momentum. If Reliance breaks below the key support of 2960, it could negatively impact Nifty, which is already in an overbought zone.
2. Shift Towards Small and Mid Cap Stocks:
– The rise in indices like Nifty Midcap, Nifty Smallcap, and Nifty Consumption reflects growing investor interest in these segments over large caps, despite defensive buying in the larger sectors.
3. Nifty Technical Outlook:
– The “dark cloud cover” pattern suggests potential bearish reversal signals. The recommendation is to “Sell on Rise” with key support levels at 25260 and 25300, and resistance around 25070 and 25000.
4. Bank NIFTY Outlook:
– Key support levels are at 51250 and 51140, with resistance at 51580 and 51800. This suggests a tight range, making breakout or breakdown crucial for the next move.
Stock-Specific Research for Trading Opportunity:
– BORORENEW (Sell): Entry at 505/500 with a target range of 495/480/470. Stop Loss is at 517. (For intraday holding)
– ALMONDZ (Sell): Entry at 31/32 with a target of 30/29. Stop Loss is at 32.60. (For intraday holding)
Given the broader market’s focus on defensive sectors and mid-small caps, a cautious strategy with clear stop losses is key in this uncertain environment.
This a review based on overall price action, Market Conditions and available inflation on Public palatiform said VLA Ambala SEBI regd. RA
Disclaimer: V.L.A. Ambala emphasizes that these recommendations are based on price movement, past behavior, and technical analysis. Stay cautious and keep an eye on key levels and upcoming budget announcements to adjust your strategies accordingly
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More about the author: Vijay Laxmi, aka VLA Ambala, is a SEBI registered Research Analyst, and her research and views are published on various media platforms. Check here – https://smtstockmarkettoday.com/pr-and-media/
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This analysis and recommendations are provided by SEBI registered research analyst VLA Ambala.