Nifty Spot View: 05/05/2023
Cmp: 18255.80
Support & Downside Range: 18185—18136--18055
Resistance & Upside Range: 18280--18340
Short Term Trend Reversal Level: -- 17885
Trading View: In today's trading session key support level to watch is 18185 spot as long as nifty trades above this levels bias remains strong , break below 18185 we may see some cooling off retracement till minimum 18136 to max 18055 spot levels whereas upside 18280—18340 this 60 points zone is going to be strong resistance zone to break so any bounce near this area Is a good exit point if anyone having a long position and wait for pull back and one can initiate short position by keeping stop loss 20 points above 18340 spot levels.
We want to let you know the recent sell-off in the U.S market due to a mid-sized Bank crisis and because of this we may be opening gap down. The U.S market has lost all its gains from the past four months in just four trading sessions. However, the recent positive corporate results from Apple may change this sentiment.
Have you checked our bank nifty option tip and if not you are missing daily big profit in the market.
In India, the sentiment has shifted to bullish while it is bearish in the U.S market. Indian-Share-Tips.Com feels that a correction of around one-third (~17,800) can be expected, and 18,500 will continue to be the resistance and thus as a strategy you can sell put at 18500 to be able to eat the premium.
We feel that the uncertainty surrounding the Karnataka state elections and vote counting on a holiday is not good for the market as it can lead to a decent gap up or gap down on the coming Monday.
Gold has hit an all-time high in India, but we feel thatthat it is unusual phenomenon as gold prices usually go down when interest rates go up.
We at Indian-Share-Tips.Com has advised our clients to reduce positions due to the potential risks surrounding the next week's election results.
The economic data in India is looking good, and its market will benefit if the global market catches up, but we here come with a new cliche that also warns that it is time to sell when everything is going well.
Market may get Jhatka of MSCI where it has announced that they will be using an adjustment factor of 0.5 for computing weight of merged entity of HDFC bank and this will lead to outflow of USD 150 Million i.e. selling in HDFC bank. Market was expecting inflow of USD 3 Billion with adjustment factor of 1 and thus pressure will remain on the Indian market.
Pack West bank is also going down the drain and it is a mid sized bank and this is a cause of concern as its shares are being beaten mercilessly and we do hope that the bank run does not occur. We wonder why Hindenburg is not coming with a report of short selling on USA regional banks and it will just require 3 hours study and not 2 years study as they advocate.
The recent news about MSCI reducing the weightage of HDFC Bank and HDFC, led to a 5% gap down for both stocks and it led to a 500-point gap down for Bank Nifty. It is surprising that other banks like Axis Bank and ICICI Bank have shot up instead.
The markets have been too volatile since the announcement of the HDFC and HDFC Bank merger, which contributes to approx 15% weightage in Nifty.
Domestic institutions have booked profits aggressively, leading to a fall in the markets, but we know that HDFC and HDFC Bank are the favourites of the FIIs and when such news of MSCI comes that Hdfc bank weightage will be reduced automatically means that the HDFC group will fall.
The markets may stabilize at this level, but next week, the Karnataka state election uncertainty will begin, making it a volatile week.
Remember that two things are certain and that is death and volatility in stock market and thus you have to embrace the volatility to survive in the market.
You
should Trade Less But Trade Accurately & this is Achieved with our Tip.
