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Daily Report 25-May-23

Indian market seen some profit booking / correction from higher level as U.S. debt ceiling showing impact on global sentiment.

Wall Street ended with cut of around 0.75% on major indices as there is no progress on U.S. debt ceiling talks. US FOMC meeting minutes had very little to cheer for.

US FOMC meeting minutes – likely pause in Jun-23 meeting but no rate cut seen in near future.  Inflation still remains stubborn and above comfort level & jobs market is resilient.

With very little news on domestic front, Indian market taking cues from global market and uncertainty over U.S. debt ceiling talks impacting negative sentiment.

VIX @ 13.11: expected to move towards 14.

F&O data: FII net long: short position continues to remain around 50;50.  Nifty PCR @ 1.00 Vs 1.20 previous.  Banknifty PCR @ 0.76 Vs 0.98 previous.

Approach on Indices: Yesterday’s closing does indicate further downside possible today.  Key level for Nifty will be at 18100 & Banknifty at 43200 on downside.  We expect volatility to continue as final F&O expiry for May 2023 series today.

SGX Nifty @ 18232 down 52 points at 8:35 AM

For Positional / delivery buying – Nifty @ 18131 & Banknifty @ 43181 could act as support level and provide fresh entry opportunity.

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