https://ganninsides.com/2024/09/08/the-september-storm/
“NIFTY reached its near-term pattern target of 24,755 on Monday morning but was unable to close below that level, halting further downside price expansion in the immediate term. The index recovered after hitting this support, but the current setup remains bearish. Technically, it will continue to be bearish as long as NIFTY spot doesn’t close above its September 2nd high of 25,333. While this seems unlikely, if it happens, it won’t change our view of a potential test of the 24,020-24,320 zone, which is also its multi-pattern support on the weekly charts. In all likelihood, a test of these levels is inevitable. Therefore, regardless of the market’s short-term movements, the overall trajectory remains bearish.”
“Tonight’s U.S. CPI release could significantly impact markets. While investors were once fixated on CPI, recent shifts in focus toward labor markets have added complexity to the equation. A cooler-than-expected CPI might initially buoy equities but could weaken the dollar, potentially impacting the yen and, consequently, stocks. A hotter-than-expected reading could force a reassessment of rate cut expectations, potentially triggering stagflation. Additionally, S&P and NASDAQ are approaching their 60-day mark from their July highs. This could lead to increased volatility, which is generally not bullish for the market on more sustained basis beond a day or two.”
“If you’re looking to capitalize on potential volatility, consider adding 25,000 December puts. This strategy aims to profit from market fluctuations. Hold the trade until October 15, allowing the market to naturally evolve. To maximize gains, sell any upside above 25,300 and consistently trade against the prevailing price trend during this period. While I anticipate increased intraday volatility, the overall market remains relatively calm. Let’s see how the next few days unfold for both Indian and global markets.”
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