Markets may see volatility today

23 Dec 2022 , 03:29 AM

Indian equity markets may see another day in red today.  Global cues are mostly negative today. US markets closed in the red yesterday. Asian markets have opened in the red today. Foreign Portfolio Investors were net buyers yesterday. If they continue their buying momentum today, then the markets may turn green today. 

US stocks saw another day of weakness yesterday. Better than expected GDP numbers saw a market sell off as Federal Reserve action on rates could continue. Dow Jones fell over 340 points. Nasdaq fell 233 points. Bond yields rose to 3.69%. US dollar index also gained to close marginally higher @ 104.45.

Asian markets have opened in the red today.  Japanese ‘Nikkei’ is trading in the red.  Strength in ‘Yen’ is seeing export related stocks see profit booking. Stronger Yen hurts margin for most auto exporters. Most other Asian indices are also seeing profit booking as weak US cues see weekend blues hurt sentiment.

 Nifty saw another day of collateral selling yesterday. Weekly expiry saw option writers make money due to higher volatility. Retail investors saw leveraged trades get hurt. Nifty ended lower by 71 points for 3rd straight day. Bank Nifty ended lower by 200 points. This as midcaps saw weakness extend. Nifty small cap 100 index ended lower by 1.6%.

Technical View: Nifty is likely to find support at around 18050. 18700 is likely to act as resistance. Bank Nifty is likely to find support at around 42000. 43050 is likely to act as resistance on the upside.

Trading call:(1-14 days): Sell Wipro December future at 388-392. Stop loss: 397.75. Target: 382.

Derivative call-time period: (1 months) : Sell Mphasis December future at 1985-1995. Stop loss: 2029. Target: 1950.