Markets may start the day in red today

Indian equity markets may start the day in red today. Asian markets have opened today in Green. US markets ended the day yesterday in red. Foreign Portfolio Investors continue to provide buying support in Indian equity markets. That may have some impact on market movement today.

US markets saw another weak day yesterday. Dow Jones fell for the 4th straight session. It ended, down by 250 points. Nasdaq also corrected by 75 points. But it traded higher by over 200 points in after-market trade. Nvidia’s results & guidance saw the stock jump by 14%. Bond yields closed near 3.73%. Oil prices rose by over $2 per barrel as OPEC mulls cut in output.

Asian markets have opened in the green today. US futures are trading higher even as debt ceiling talks continue to be a small deterrent as both the parties debate on the issue. Japanese ‘Nikkei’ is trading higher by 150 points. It is managing to stay above 30,000 level. It has breached this level after almost 2 years. Taiwan is the other star market today. Chip giant Nvidia’s guidance is seeing TSMC shares rally. This rally is causing gains in the broader market too.

 Nifty saw a day of correction yesterday after 3 days of gains. Profit booking in the last hour saw morning gains turn into losses. Adani twins, HDFC Bank & ICICI Bank saw profit booking. Bank Nifty also ended, down by 276 points. Heavyweights dragged the index down. The broader market saw volatility with expiry of May series today.

Technical View: Nifty is likely to find support at around 18200. 18500 is likely to act as resistance on the upside. Bank Nifty is likely to find support at around 43500. 44300 is likely to act as resistance on the upside.

Trading call:(1-14 days) : BUY Jindal Steel June future @ 513.5-514.5. Stop loss: 503.75. Target :526 .

 Derivative call-time period: (1 months) : BUY Hind Copper June future @ 102.5-103.5. Stop loss: 100.9. Target: 106.