Markets may rise further

30 Nov 2022 , 08:42 AM

Indian equity markets may rise further today. It seems that investors, especially Foreign Investors, have started investing with a long term perspective after two years of short term value buying – profit booking perspective. The weakening of China due to its government’s draconian Covid policy is being seen as advantageous for India by Foreign Investors.

US markets saw another volatile day yesterday. Dow Jones ended flat. Nasdaq ended, down by 65 points. Most investors await the Federal Reserve statement today on rates & inflation outlook. Bond yields rose to 3.73%. US dollar index remained range bound, at near 106.6.
 
Asian markets have opened mixed today.  Japanese ‘Nikkei’ is seeing profit booking in early trade. It is trading lower by178 points. Most other Asian indices are trading higher after the big rally at Hang Seng yesterday. The index rose over 5% to record its best rally in over 3 months. Chinese stocks seem to have priced in most negatives and valuation comfort is seeing buying interest.

Nifty saw a day of history being repeated 2nd day running. The indices recorded another day of new highs with the Nifty hitting 18678 and Sensex hitting 63886. HUL, JSW Steel and Cipla led the gainers. IndusInd, Coal India and Bajaj Finserv led the losers. Mid-caps also saw action. Nifty Next 50 closed with gains of 0.50%. Mid cap index saw losses of 0.50% 

Technical View: Nifty is likely to find support at around 18450. 18750 is likely to act as resistance. Bank Nifty is likely to find support at around 42700. 43500 is likely to act as resistance on the upside. 
 
TRADING call (1-2 days): BUY Gail December future at 94-95. Stop loss: 92.55. Target: 96.5.

Derivative call- time period:(1 month) : BUY Dalmia Bharat December future at 1770-1780. Stop loss: 1739. Target:1812.