Indian equity markets likely to see decline today

20 Oct 2022 , 08:50 AM

Indian equity markets are likely to see a day in decline today. Rupee touched new lows yesterday, against the dollar. It crossed the 83/ $ mark for the first time ever in its history. This can put further upward pressure on selling by foreign portfolio investors. Stocks of ITC, Axis Bank, Asian Paints etc are likely to see price movement today. These companies will announce their September quarter results today.

US markets saw profit booking yesterday after 2 days of stellar gains. Higher yields and a stronger US dollar hurt sentiments. Dow Jones closed lower by 99 points. Nasdaq fell 91 points. Bond yields on 10-year bonds hit 4.06%. US$ index climbsed1% t0 112.5

 Asian markets have opened in the red today. Japanese ‘Nikkei’ is down by 300 points in early trade. ‘Yen’ tumbled to 30-year lows hitting 150 to the US$. Most other Asian indices are trading lower by almost 1%. Chinese stocks are seeing their worst performance. Hang Seng sank to new lows despite government intervention in order to  stabilize the currency.

Nifty saw another day of gains. Losses in the last hour took away most of the intraday gains as the Rupee hit a new low.  It closed at 83/ $ for the 1st time ever. Nestle, ITC and HDFC led the gainers. JSW Steel, SBI and NTPC led the losers. Rupee’s weakness saw IT and metals lead the losers. Mid-caps also saw mild gains. Midcap 100 index closed higher by 0.25%.

Technical View: Nifty is likely to find support at around 17250. 17650 is likely to act as resistance. Bank Nifty is likely to find support at around 39800. 40700 is likely to act as resistance on the upside. 

TRADING call (1-2 days) Sell Havell’s October future at 1250-1260. Stop loss: 1288.05.  Target: 1228.

Derivative call- time period:(1 month) : BUY Motherson October future at 63-63.5. Stop loss: 62.10. Target : 65.