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US Fed meet, F&O expiry, RBI policy: Your trading guide ahead of key events

It has been a rollercoaster ride for the markets in the past few sessions that have reacted to the global developments, expecially in China. That apart, markets will be watching closely for any hints in relation to inflation, economic growth, interest rates and when the US Fed will likely start reducing its purchases of government bonds. READ ABOUT IT HERE  Back home, the expiry of futures & options contracts for the July series coupled with the upcoming monetary policy statement of the Reserve Bank of India (RBI) is also keeping traders and investors nervous. ALSO READ: Sensex.....
It has been a rollercoaster ride for the markets in the past few sessions that have reacted to the global developments, expecially in China. That apart, markets will be watching closely for any hints in relation to inflation, economic growth, interest rates and when the US Fed will likely start reducing its purchases of government bonds. READ ABOUT IT HERE 

Back home, the expiry of futures & options contracts for the July series coupled with the upcoming monetary policy statement of the Reserve Bank of India (RBI) is also keeping traders and investors nervous.

ALSO READ: Sensex slides for third day; what's spooking investors on D-Street?

Here's how you can navigate though this uncertain phase for the markets. 

S&P BSE SENSEX

Outlook: A range trade breakout may see 2000 points run.

The index is volatile and is moving in the a range of 53,500 to 51,500 levels since the past few sessions. Such consolidation usually triggers a breakout towards a decisive trend either way. One way to gauge the strength is to identify a gap-up or gap down close on the breakout mark. On the higher side upon breakout, the Sensex may see 55,500 and on the downside, it may fall towards 49,500 levels. For now, the overall trend remains bullish.  CLICK HERE FOR THE CHART

 

NIFTY50

Outlook: A range trade breakout may see 500 points run.

The index is trading near the 50-days moving average (DMA) placed at 15,663. One can see a rebound from a medium-term perspective. In the short-term, however, Nifty is likely to remain range-bound between 15,400 to 16,000 levels. A firm move of over 500 points may occur once the index manages to break this tight range. On the higher side, the Nifty 50 may see 16,500 and on the downside, it may dip below 15,000 mark if the global cues remain negative for long.  CLICK HERE FOR THE CHART

 

NIFTYBANK

Likely target: 33,700 (only after breaching 100-DMA)

Upside potential:   - 1.50%

The Nifty Bank index has breached the 50-DMA at 35,000 levels suggesting weakness and negativity. The index has support at 100-DMA, which is currently placed at 34,191. The overall trend is protected above the medium-term support of 33,700 levels, as per the daily chart. The recent gap-down in the range of 35,751 to 35,347 has dented the upside bias. Unless this range is not conquered, the positive sentiment is less likely to emerge. A breach of 100-DMA may lead to Nifty Bank testing the support of 33,700 mark.  CLICK HERE FOR THE CHART

NIFTY AUTO

Likely target: 9,756

Upside potential:   -2.10%

After breaching 50-DMA and 100-DMA, the index has shed the positive momentum and is heading towards the next crucial support of 200-DMA that is placed at 9,756 levels, as per the daily chart. The Moving Average Convergence Divergence (MACD) has broken the zero line downward, which suggests a negative sentiment. Although the Relative Strength Index (RSI) has entered the oversold region, the price action is not highlighting any major reversal. CLICK HERE FOR THE CHART

NIFTY IT

Likely target: 30,500 and 30,800

Upside potential:   3% and 4%

The Nifty IT index is one of the strongest indexes market at the current juncture. The overall trend has a closing basis support of 29,200. Until this support is held, the index and its constituients will continue to see higher interest from market participants. The medium-term indicates a rally towards 30,500 and 30,800 levels.  CLICK HERE FOR THE CHART



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