Markets may begin the day on a mixed note

28 Oct 2022 , 09:01 AM

Indian equity markets may start the day on a mixed note. Asian Markets have opened the day in red today. Oil prices may gain further. Behavior of Foreign Portfolio investors today will also determine the course of the market movement. Over the past few days Foreign Investors have either remained net sellers in a limited way or were net buyers. IMF has said that India's economic recovery will be slow. Stocks of Dr Reddy's Laboratories, JSW Energy, Vedanta etc may see price movement today. These companies will be announcing their September quarter results today.

US markets saw another volatile session yesterday. Meta dragged the Nasdaq lower on weaker guidance. Its price fell by over 24%. Dow Jones gave up gains of over 470 points to close higher by 190 points. Nasdaq fell for 3rd straight session, down by 178 points. Bond yields fell sharply with the 10-year paper seeing yields of 3.93%

 Asian markets have opened in the red. Japanese 'Nikkei' is down by over 300 points in early trade. Japanese Yen has appreciated against the dollar to 146.2, from 150 level that it saw a few days ago. South Korea & Taiwan markets have seen good gains in the last two sessions and can see consolidation today. The Hang Seng is seeing high volatility due to huge selling pressure from foreign investors.

Nifty saw quiet expiry yesterday with the index closing near the high for the session. Nifty gyrated through the session giving up all morning gains as local mutual funds booked profit. Foreign investors turned buyers with last hour buying shoring up the Nifty on expiry of derivative contracts for the October series. JSW Steel, Hindalco and Tata Steel led the gainers. Profit booking was seen in Bajaj Finance, Bajaj Finserv and Asian Paints. Mid-caps ruled the roost. Nifty Next 50 closed with gains of over 1.17%.

Technical View: Nifty is likely to find support at around 17650. 18050 is likely to act as resistance. Bank Nifty likely to find support at around 41000. 41800 is likely to act as resistance on the upside. 

TRADING call (1-2 days): BUY Motherson November future @ 63.5-64.5. Stop loss: 62.65. Target: 66.

Derivative call- time period:(1 month): BUY Indigo November future @ 1750-1755. Stop loss: 1716.90 .Target : 1790.