Markets may start the day on a flat note today

2 Sep 2022 , 08:49 AM

Indian equity markets may start the day today on a flat note. US markets closed yesterday on a positive note. Asian markets have today opened on a mixed note. SGX Nifty is up by 0.11% since morning.  On the economic front, GST collection of the government has increased year-on-year by 28% to Rs 1.44 lakh crore in August. Services exports of India in July increased year-on-year by 20.2% to $23.26 billion.

US markets saw pullback after 4 days of frantic selling. Dow Jones closed higher by 145 points. Nasdaq closed lower by 32 points after being down by over 230 points in intraday trade. Bond yields hardened to 3.26%. US dollar index touched new high of 109.56. Oil prices fell further as global slowdown means lesser consumption of oil.
 
 Asian markets have opened mixed with sideways trade in most indices as the recent sharp sell off in the US markets is causing collateral selling in most Asian markets. The Japanese ‘Nikkei’ is trading flat. South Korean ‘Kospi’ is slightly higher. Most investors await the jobs report later today in the evening. This report could chart the course of the markets till the Federal Reserve meet later this month.

Nifty saw a very volatile session as the index fell sharply, to recover mid-session, before another bout of selling saw it close, down by 220 points. It saw intra-day fall of over 350 points. Bank Nifty was also very volatile, swinging over 1000 points before closing lower by 235 points. Banks led the short covering. Bank of Baroda, IndusInd and SBI led the gainers. Profit booking was seen in HDFC & ICICI bank. Metals, IT were the main losers.  Mid-caps were the star performers closing in the green with Nifty midcap 50 index up by 0.50%.

Technical View: Nifty likely to find support at around 17400 while 17850 is likely to act as resistance on the upside. Bank Nifty likely to find support at around 38500 while 39800 is likely act as resistance.

TRADING call (1-2 days) BUY Naukri September future @ 4250-4300. Stop loss: 4189.5. Target : 4365

Derivative call- time period:(1 month) : BUY Deepak Nitrite September future @ 2010-2020. Stop loss: 1974.70. Target : 2056