Indian markets may again start the day on a positive note

17 Aug 2022 , 08:57 AM

Indian markets may start the day on a positive note today. Walmart reported yesterday its June quarter sales. Its sales were higher than expectations. This may give hope to some investors that the consumption-driven US economy has started the path of recovery. A prolonged slow down in the US economy will hurt Indian economy too. Oil prices gained yesterday on the back of expectations of increase in demand and lowering of US oil inventory.

US markets saw another strong day yesterday. Dow Jones climbed over 230 points. Nasdaq closed lower by 25 points on profit booking. Consumer stocks led the gainers with Walmart leading the winners. Bond yields traded higher at 2.82%. Oil traded near 6 month lows.

 Asian markets have opened mixed with the Japanese 'Nikkei' trading higher by over 200 points. ASX & other indices are trading lower on profit booking.US dollar has become stronger. This could see Asian currencies see profit booking. Chinese stocks continue to see profit booking after being laggards in this rally.

Nifty saw another superb day climbing to 17800 level. Auto, insurance and OMC stocks led the gainers. HDFC LIFE, Eicher Motor, Maruti & BPCL led the gainers. Grasim, Hindalco. Bharti and  SBI saw profit booking. Mid caps came back strongly. Nifty small cap 100 index was up over 1.45%. Market breadth also saw gains as retail investors chased momentum in mid caps.

Technical View: Nifty likely to find support at around 17560 while 17950 is likely to act as resistance on the upside. Bank Nifty likely to find support at around 39000 while 39700 is likely to act as resistance.

TRADING call (1-2 days) : BUY Godrej Consumer August future at 890-894. Stop loss: 874.  Target: 910

Derivative call- time period (1 month) : BUY Hindustan Copper August future at 114-115. Stop loss: 112.10.  Target: 117.