Indian markets may start the day in red today

Cues from foreign equity markets are negative today

August 08, 2022 8:52 IST | India Infoline News Service
Indian equity markets may start the day in red today.  Other Asian markets have started the day marginally in red today. Strengthening of US dollar will be a concern for Indian equity markets today as it will result in further depreciation in the value of rupee against the dollar. Stocks of companies such as Bharti Airtel, Jaypee Infratech, Adani Ports and Special Economic Zones etc will see movement today. These companies will announce their June quarter results today. 

US markets saw another volatile day as jobs number beat all estimates.  528,000 new jobs were created in the US economy in the month of July.  Bond yields and US dollar spiked. However, stocks opened lower but buying support saw Dow Jones recover from the down of 220 points to close higher by 76 points.  Nasdaq recovered from the down of over 250 points to close lower by 63 points.   

Asian markets have opened flat to mildly negative as markets see profit booking ahead of strong US jobs data and stronger US $.The Japanese 'Nikkei' is trading lower by 40 points followed by weakness in Taiwan and ASX markets. Chinese stocks could also see profit booking as Taiwan tension could see US corporate spending reduce which could affect output in short term. 

Nifty saw another volatile day to close in the green even as local mutual funds booked profit while foreign investors continued to buy. Nifty saw swings of over 220 points before closing higher by15 points. Bank Nifty performed better with gains of over 165 points as ICICI, AU & IDFC First bank led the gainers. Mid caps saw profit booking with the Nifty next 50 closing in the red, down by 0.10%.

Technical View: Nifty likely to find support at around 17160 while 17500 is likely to act as resistance on the upside. Bank Nifty likely to find support at around 37400 while 38200 is likely to act as resistance.

TRADING call (1-2 days) : BUY Bharat Forge August future at 706-708. Stop loss : 692.85. Target : 722

Derivative call- time period:(1 month):  BUY Godrej Prop August future at 1375-1385. Stop loss : 1352.45.  Target : 1410

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