Another volatile day may be in store for Indian equity markets

22 Nov 2022 , 08:48 AM

Indian equity markets may have another volatile day today. Foreign Investors were again net sellers in Indian equity markets yesterday. If this trend continues today, then the markets may have one more day in red. Goldman Sachs has cut down India’s GDP growth forecast for FY 23 to 5.9%.

US markets saw another day of volatile swings yesterday. Global growth concerns saw oil hit 10-month lows. Brent crude traded near US$ 83. Bond yields traded near 3.82%. US dollar index recovered to close near 107.6. Nasdaq closed lower for 3rd day running, down 120 points. Dow Jones closed lower by 40 points.
 
Asian markets have opened on a mixed note today, led by the Japanese ‘Nikkei’. It is up by over 200 points in early trade. Most other Asian indices are trading flat or sideways. China concerns on real estate lending is causing caution in Chinese stocks.

Nifty saw a day of weak trade play out, yesterday. The index saw profit booking pressure as it headed into expiry of derivative contracts this Thursday. The undertone was strong with select banks & telecom stocks leading the gainers. Select mid-caps hit new highs led by mid cap banks. Selling was seen mainly in Reliance, HDFC twins and tech stocks like Tech Mahindra and TCS. The index closed lower by 147 points. Bank Nifty closed lower by 90 points.

Technical View: Nifty likely to find support at around 18150. 18650 is likely to act as resistance. Bank Nifty likely to find support at around 42000. 42800 is likely to act as resistance on the upside. 
 
TRADING call (1-2 days) BUY L&T November future at 2010-2020. Stop loss: 1974.25. Target: 2056.

Derivative call- time period:(1 month) : Buy PFC November future at 124.5-125. Stop loss: 122.25. Target: 127.5.