Good probability that Indian equity markets may see a day in Green today

8 Dec 2022 , 08:51 AM

There is a good probability that Indian equity markets may see a day in Green today. Foreign Portfolio Investors were net buyers in a significant way yesterday. Buying pull may push markets upwards today. Oil prices declined yesterday. This is also a favorable factor for Indian economy and Indian equity markets.

US markets saw another volatile day yesterday.  Dow Jones closed flat. Nasdaq closed lower by 50 points, extending losses for 4th straight session. Oil prices hit a year low, to close at US$77 for Brent crude. WTI crude price touched US$72 per barrel. Bond yields inched lower to 3 month lows @ 3.44%, indicating that a mild recession may be on the way.

Asian markets have opened in the red today. Japanese ‘Nikkei’ is trading lower by 200 points in early trade.  South Korean ‘Kospi’ and ASX markets are also trading lower. Technology stocks are seeing profit booking. Chinese stocks  will see more action as Chinese Government relaxes Covid restrictions for travel & tourism.

Nifty saw a day of weakness yesterday.  It closed lower by 80 points. Bank Nifty closed flat. Reliance, SBI Life, Bajaj Finserv and NTPC led the losers. HUL, BPCL and Asian Paints led the gainers. Mid-caps also saw profit booking. However, Nifty Next 50 closed with gains of over 0.30%. 

Technical View: Nifty is likely to find support at around 18450. 18850 is likely to act as resistance. Bank Nifty is likely to find support at around 42700. 43700 is likely to act as resistance on the upside.

TRADING call (1-2 days): BUY ABB December future @ 2990-3000. Stop loss: 2935.15. Target: 3060.

Derivative call- time period:(1 month): BUY L&T December future @ 2125-2135. Stop loss: 2087.35 . Target: 2175.