Indian equity markets likely to start the day in Red

10 Aug 2022 , 08:46 AM

Indian equity markets are likely to start the day in red. Other Asian markets have started the day in red. Profit booking may take place in early trade. Inflation in food items such as wheat and lentils has once again become a concern for the economy. Stocks of companies such as Tata Consumer Products Ltd and Eicher Motors will see movement in their prices today. These companies will declare their June quarter results today.

 US markets saw profit booking for 2 days as Nasdaq led the markets lower with technology stocks under pressure.US bond yields traded near 2.78% as markets digested unexpected gains in  jobs numbers, which may see the Federal Reserve keep 75 basis points rise in September on the table.    

Asian markets have opened in the red for the 2nd day running led by the Japanese ‘Nikkei’. Nikkei is down by 140 points in early trade after the 250 points decline yesterday. Taiwanese stock market is also seeing decline due to profit booking in technology stocks after the sharp run up over the last month. Chinese stocks will again be in action as short term geopolitical risk sees ETF flows out of equities and into other markets.

Nifty saw another superb start to the week as foreign buying buoyed sentiments with large cap stocks seeing huge buying interest and driving the index to close above 15500. Bank Nifty also saw buying interest with the index closing higher by 300, points above 38200. Mid caps saw profit booking with the index lagging the large caps. Nifty small cap 100 index closed higher by 0.34%. 

Technical View: Nifty likely to find support at around 17250 while 17650 is likely to act as resistance on the upside. Bank Nifty likely to find support at around 37600 while 38600 is likely to act as resistance.

TRADING call (1-2 days) : Sell Coal India August future at 212-214. Stop loss : 217.25.  Target 208.5

Derivative call- time period (1 month) :  Sell PVR August future at 2130-2140. Stop loss :  2177.65. Target : 2090