Markets may start the day on a red note

12 Aug 2022 , 08:59 AM

Indian equity markets may start the day in red today. After the gains of yesterday, markets may see some profit booking by domestic investors. Foreign Investors have turned net buyers over the past few days. This is a good thing for the Indian markets. Oil prices rose yesterday by around 3%. This is a negative development for Indian markets. Stocks of companies such as Hero MotorCorp, Wockhardt etc will see movement today. These companies will be declaring their June quarter results today. 

US markets saw profit booking yesterday after the stupendous run of the previous day. Dow Jones closed up by 27 points. Nasdaq closed lower by 74 points. During the intra-day period Dow Jones went up by over 330 points before closing flat as last hour profit booking saw all the gains get wiped out. Bond yields hardened to 2.88%. 

 Asian markets have opened mixed with the Japanese 'Nikkei trading higher by 2% as it reopened today after the holiday yesterday. Nikkei seems to be catching up with the global rally spurred by lower inflation reading in the US. Most other Asian markets are trading muted with ASX & South Korea trading in the red because of profit booking. Chinese stocks could be in action as markets look for fresh new IPOs to suck up more money from the public as primary market makes a comeback.

Nifty saw another superb day with foreign buying seeing large cap domination as indices jumped over 124 points. Bank Nifty gained over 590 points. Axis, IndusInd, Bajaj Finance and HDFC led the gainers. Profit booking was seen in Tata Consumer, ITC and NTPC. Mid caps also joined the rally. Nifty midcap 50 index moved higher by 0.91%.

Technical View: Nifty likely to find support at around 17,360 while 17,800 is likely to act as resistance on the upside. Bank Nifty likely to find support at around 38,400 while 39,200 is likely to act as resistance.

TRADING call (1-2 days) : BUY Indigo August future at 2025-2035. Stop loss: 1989.  Target: 2072

Derivative call- (time period 1 month): BUY Gujarat Gas August future at 461-464. Stop loss: 452.6.  Target: 473