Indian equity markets may start the day in green

12 Sep 2022 , 08:41 AM

Indian markets may start the day in green today. However, markets may see some selling pressure later in the day. US dollar has weakened marginally against some currencies. Crude oil prices declined yesterday. This is a favorable development for the Indian economy. 

 US markets ended the week with sharp gains. Dow Jones closed higher by 340 points. Nasdaq closed up  by 2.11% or 250 points. Bond yields remained near 3.30%. Oil prices remained lower .WTI crude is trading near US 85.5. US dollar is seeing weakness. Dollar index closed below 109.  This saw sharp pullback in other emerging market equities.
 
 Asian markets have opened in the green today, led by the Japanese “Nikkei’. Nikkei is trading higher by over 350 points in early trade. Most other markets in Asia are closed for a holiday including that in China, Hongkong & South Korea. ASX & Taiwan are also seeing gains as weakness in US dollar bodes well for Asian stocks. 

Nifty saw another volatile day on Friday. Early gains resulted in profit booking by local mutual funds even while foreign investors remain big buyers. Nifty hit 17925 before hitting a low of 17786.It closed with gains of 35 points. Bank Nifty also saw most gains given up intra-day before closing higher by 200 points. IT stocks led the gainers. Cement, Auto and Insurance stocks saw profit booking.
 
Technical View: Nifty likely to find support at around 17600. 18000 level is likely to act as resistance on the upside. Bank Nifty likely to find support at around 40300 while 41000 is likely to act as resistance.

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