Balanco's reading of the chart suggests that Nifty 50 may test the 200-DMA in the next month. This level also happens to be the lower end of the uptrend channel traced from the 2023 lows.
"We are not seeing major signs of weakness (on Nifty 50) and in the month of July, largecaps are making a comeback compared to the midcaps", Balanco said.
Discussing the US stock market, which has been hitting new highs almost daily, Balanco noted that the market's gains are becoming more concentrated, a typical sign of maturity
As BoJ’s announcement of loosening grip on yields pulls down the Yen’s gains, market expert Balanco sees a correction happening across risk assets if the Yen goes below key support levels.