Markets likely to start the day in red

Indian equity markets are likely to start the day in red today. RBI will announce its interest rate hike decision today. The amount of interest rate hike announced will impact the course of market movement later in the day. US markets closed yesterday in the red. Asian markets have today opened in the red.

US markets saw sharp fall yesterday. Markets turned cautious ahead of the Federal Reserve meeting next week. Profit booking has become the call for the week. Dow Jones fell over 480 points. Nasdaq fell 220 points. Bond yields hit 3.57%. US dollar index saw some recovery to 105.09.

Asian markets have opened in the red today, led by the Taiwan & South Korean markets. ASX index is also trading in the red. IT stocks are declining. Expectations of higher rates persist.  . Chinese stocks could also see some profit booking even as partial reopening sees stocks do well.

Nifty ended on a flat note yesterday.  Banks led the rally. Nifty rallied from down by over 100 points to close flat. Bank Nifty ended with gains of over 229 points. Large caps like SBI, IndusInd, HDFC and ICICI led the gainers. Metal stocks were also among gainers.  Tata Steel & Hindalco were the big gainers. Reliance, Apollo Hospital & Tata Motors led the losers.

Technical View: Nifty is likely to find support at around 18550. 18950 is likely to act as resistance. Bank Nifty is likely to find support at around 43000. 44000 is likely to act as resistance on the upside.

TRADING call (1-2 days) : Sell Federal Bank December future at 136-138. Stop loss: 139.75.  Target: 134.

Derivative call- time period:(1 month): Sell Coforge December future at 4175-4195. Stop loss: 4269.  Target: 4100.