NIFTY
Animal spirits leads the life one of adventure and evolution. The beast in the mind. Tesla unveils first time on X, the Beast.
While we talk of the beast, debate on inflation vs deflation will rage on. Enough space to start a debate. China continues to obey gravity and chooses the Earth in term of anything but optimistic projections. Japan 2 Y goes back to "Zero"
Beast is also a sign that we see in euphoric markets when FOMO surrounds one and all. Today there are no contrary opinion on the Indian Equity market, or those we dont see them. There were calls couple of months back, they all have become meme's now.
The clues this morning, are to the negative, one has to wait and see how they unfold. Clearly 22100 plus is not a sustainable one in the near term. The rally is led by the Large Cap.
In term of probabilistic oscillator that is the RSI and the volatility one that is the DMI both are near or around the zone of overbought. Leave the cream to the maid looks an apt one. When MOUs have become the order book, when headlines become the bottom lines, when efforts to cut the costs are seen as solutions than problems, time to take some bets off in those places where they have exceeded the extreme targets.
For the day shorts stops 22160 for move towards 21980 is what is better RR.
NIFTYBANK
RBI continues to monitor various Risk Related measures, it is an ongoing process, not an alarm, but a watch. More particularly in the NBFC space. We hear bank's reducing the unused credit card limits as they carry Risk Weight. They throw the depth to which Risk is measured. Not an alarm on the net level.
The head and shoulder pattern drawn here is not suggest there is a cap. This pattern is also part of the continuation pattern and hence special attention in the form of PIP graph.
The trade deficit continues to print USD20 Billion deficit. The Red Sea impact will be felt in January numbers that is another month away. However, the developments there are a point to keep a tab on the near term.
US Holiday not much of data. ECB says expectation of rate cut are too early. While Globally Service inflation is major talk point, for us that is on the decline. Translated into it reduces the average purchasing capacity. But don't go by the big-ticket property purchases. Major events elections and government led expenditure would continue to keep the activity.
Hurdles ahead of 48500 supports around the 47800 (looks we rewritten this at least three times.
Tad in the buy mode than sell mode. But strictly around the area of supports and resistance, clear 150 point stops either way.