Indian equity markets likely to start the day in red today

There may be significant selling today before Federal Reserve announcement on interest rate hike

September 21, 2022 8:52 IST | India Infoline News Service
Indian equity markets are very likely to start the day in red today. US Federal Reserve's announcement on interest rate hike is likely to come later in the evening today. Before that there will be some selling today. Market participants cannot discount the possibility of a shock 100 basis point increase by the US central bank.

US markets closed in the red yesterday. Dow Jones closed, down by 1.01%.  Nasdaq closed, down by .95%. S&P 500 closed, down by 1.13 %. NYSE closed, down by 1.36%. The expectation of an aggressive interest rate hike today by Federal Reserve, later in the day, kept the US markets jittery. US 10-year bond yield hit 11year high. Crude prices fell to US$ 85. US dollar index closed near 110.

Asian markets have opened in red today.Nikkei is trading down by 1.35%.  Taiwan Index is trading down by 0.33%. South Korean Kospi is down by 0.97%. Shanghai index is down by .39%.

Nifty saw another big day with last hour profit booking seeing gains get reduced, after being up by over 300 points, but closing up by 194points.Bank Nifty was the star, being up by over 750 points, before closing with gains of 560 points.Mid caps made a strong comeback with the Nifty midcap 100 index being up 1.43%.Pharma was the sector for the day with Cipla, Apollo Hospital,Sun pharma and Dr Reddy’s leading the gainers.

Technical View: Nifty likely to find support at around 17550. 18000 is likely to act as resistance on the upside. Bank Nifty likely to find support at around 41000 while 41900 is likely to act as resistance.

TRADING call (1-2 days) :SellUPL September future @ 716-720.Stop loss :732.35. Target :705.5.

Derivative call- time period:(1 month) :SellVEDL September Future @ 278-282.Stop loss:286.55. Target :274.

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