F&O Manual | Nifty breaks positive streak, key straddle position at 19,700 strike.

Introduction:

Analysts estimate that the index’s short-term support level is 19,600 and that its short-term upside objective is 20,000. Support levels for the day are at 19,550, and resistance levels are at 19,800.
Mphasis, Infosys, and Adani Enterprise had a negative setup among the individual equities. While Idea, HCL Tech, and TCS all use short covering.
The benchmark market indices are currently trading in the red, snapping their two-day winning streak. While the real estate index is up 1%, the IT, electricity, and bank sectors are down 0.5–1 percent.

According to V K Vijayakumar, Chief Investment Strategist of Geojit Financial Services, “the market is susceptible to two main macrotrends. While the domestic trend is mostly good, the global trend is marginally negative. Retail inflation in the US for September came in at 3.7 percent, which was somewhat higher than anticipated. This greater inflation tendency has the effect of lengthening the time it will take to reduce US inflation to its long-term target of 2%. As a result, rates will continue to be higher for longer. This will prevent the stock market from rising.

On the other hand, domestic dynamics have changed dramatically for the better, with the IIP for August climbing impressively to 10.3 percent and the CPI inflation inching down sharply in September to 5.02 percent. This suggests that the MPC can wait out the remaining months of FY 24 before considering a rate drop in Q2 of CY 24.

Although this is good for the economy, the results of the major IT companies, who are having trouble with weak revenue guidance for the next fiscal year (FY) 24 and a lack of certainty over growth recovery, are expected to drag down the market. Strong names in banking are able to help the market going forward.

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The post Nifty breaks positive streak. appeared first on ASWGROUPINDIA.