Indian equity markets likely to be in selling pressure today

17 Oct 2022 , 08:58 AM

Indian equity markets are likely to be under selling pressure today. Other Asian markets have opened in red. US markets closed in red on Friday. Government has once again increased special addition excise duty or windfall tax on domestically produced crude oil, diesel and aviation turbine fuel. Stocks such as ONGC, Reliance Industries etc may therefore come under selling pressure today. Stocks of airline comapanies are also likely to see a day in red today. Stocks of ACC, Can Fin Homes etc may also see movement today. These companies will annouce their September quarter results today.

US markets saw weakness creep in the next day after a big rally on the previous day, Thursday. Bond yields hit 4%. US dollar index gained 1% to 113.3. Oil prices fell over 4% as demand destruction in Europe saw prices fall.

 Asian markets have opened in the red today after the huge rally on Friday.  US markets flattered to deceive with the Nasdaq falling over 2.5% on Friday. The Japanese "Yen' is trading near 148 per dollar. This is resulting in intervention by BOJ. Most other Asian markets are trading lower.

 Nifty saw another volatile day with bulls & bears both getting hit as the index climbed over 350 points before last hour profit booking saw the gains get halved to 175 points. Profit booking saw Bank Nifty also give up some gains, to close higher by 680 points. Overnight reversal in the US indices saw Indian indices jump too.  INFY, HDFC, HDFC Bank & HCL Tech led the gainers. Profit booking was seen in ONGC, M&M & JSW Steel. Mid-caps were also in fine form. Nifty 100 closed higher by 0.75%.

Technical View: Nifty likely to find support at around 17000. 17450 is likely to act as resistance. Bank Nifty likely to find support at around 38800. 39700 is likely to act as resistance on the upside. 

TRADING call (1-2 days) : Sell ONGC October future at 127-128. Stop loss: 130.10. Target: 124.75

Derivative call- time period:(1 month): BUY Tata Power October future at 215.5-216.5. Stop loss: 211.60.  Target: 221