Indian equity markets likely to begin the day on a flat note

9 Nov 2022 , 08:42 AM

Indian equity markets are likely to start the day on a flat note today. Asian markets have opened mixed today. Foreign Portfolio Investors have been providing strong buying support to Indian equity markets over the past few days. If this trend continues today then equity markets may rise again. Stocks of companies such as Tata Motors, Lupin, Nalco, Balrampur Chinni Mills etc may see price movement. These companies will be declaring their September quarter results today.

US markets saw the best 3-day rally yesterday.  Dow Jones gained over 1150 points. Fall in US$ increased expectations of higher return on equity for many US companies. This was coupled with buying due to short covering. Nasdaq gained moderately, ahead of the CPI numbers that are due this Thursday. Bond yields moderated to 4.15%. US dollar index fell to 109.65.

 Asian markets have opened mixed today.  Japanese ‘Nikkei’ is seeing profit booking after the rally of last 4 days. It is trading mildly in the negative. The other indices are also range- bound today. Most are trading sideways.  Investors await the inflation data, due in the US tomorrow. This data will set the tone for Federal Reserve action over interest rates, in December.

Nifty saw a day of swings before closing in the green. Last hour buying by foreign investors saw the index close with gains of 85 points.  Foreign investors have been net buyers for the last 7 days. Profit booking by local mutual funds saw intra-day volatility. Banks led the rally. SBI and Bank Baroda numbers beat expectations. Britannia, SBI and Adani Ent led the gainers. Divi’s Lab, Cipla & Asian Paints saw profit booking. 

Technical View: Nifty is likely to find support at around 18050. 18450 is likely to act as resistance. Bank Nifty is likely to find support at around 41200. 42300 is likely to act as resistance on the upside. 
 
TRADING call (1-2 days) BUY PNB November future @ 42-42.25. Stop loss: 41.25. Target: 43.50.

Derivative call- time period:(1 month) BUY Tata Steel November future @ 107-108. Stop loss :105.30. Target : 110.