Markets may see heavy selling in early trade

16 Sep 2022 , 08:37 AM

Indian markets are likely to see selling in early hours. US markets ended in red yesterday. Asian markets too have opened the day today on a negative today. Economic slowdown is spreading fast globally. Fitch has lowered India’s GDP growth forecast for FY23 to 7% from 7.8%. Oil prices came down by more than 2% yesterday on fears of a worsening economic slowdown.

US markets saw another volatile day yesterday ending in losses. Fear over Federal Reserve rate action saw money exit equities and enter fixed income assets. Bond yields hit 3.45%. US dollar index closed unchanged near 109.5. Oil prices slipped further after one day pullback rally. 
 
Asian markets have opened in the red today.  Japanese ‘Nikkei’ is down by 200 points. Weekend blues are keeping investors on the sidelines. Taiwan & South Korean markets are also trading lower . Chinese stocks are also seeing subdued trade. 
 
Nifty saw another volatile day yesterday. The index closed lower as profit booking was seen after the Bank Nifty hit fresh all- time highs. IT stocks led the losers along with metals. Profit booking also saw the Bank Nifty ending the day in the red. Maruti, Eicher Motor & Adani Port led the gainers. Hindalco, Tech Mahindra and Infosys led the losers.  Mid-caps also saw profit booking.
 
Technical View: Nifty likely to find support at around 17700. 18200 is likely to act as resistance on the upside. Bank Nifty likely to find support at around 40500 while 42000 is likely to act as resistance.

TRADING call (1-2 days) Sell Mindtree September future @3250-3270. Stop loss: 3326.  Target : 3190

Derivative call- time period:(1 month) Sell Bajaj Finserv September future @ 1740-1760. Stop loss: 1785.  Target : 1715