Indian equity markets may open in green today

27 Oct 2022 , 08:46 AM

Indian markets are likely to start the day in green today. There is also good probability of volatility and swing movements today. Oil prices increased by around 3% on Wednesday. This increase is not a favorable factor from the perspective of Indian equity markets. Results of September quarter of companies, that will be announced today, may also have some impact on market movement.

US markets saw 2 volatile days. Weak earnings guidance by Microsoft and Amazon saw Nasdaq give up gains to close lower by 200 points, yesterday. Dow Jones closed flat. However, the index has gained over 6% from the recent lows in late September. Bond yields fell sharply. Yields on 10-year bonds fell sharply by over 20 basis points to 4%. US$ also fell to 1 month low. US dollar index stood at near 109.5

 Asian markets have opened in the green led by the South Korean & Taiwan markets. Stocks at both these markets had gotten deeply oversold. They are now seeing value buying. The other gainer is Hang Seng index. It is rising today after the capitulation seen recently due to huge foreign selling. Expectations of  Xi Jinping extending Zero Covid policy was the main cause of foreign investors selling Chinese and Hong Kong stocks, recently.

Nifty saw weakness after 6 straight days of gains. Derivative expiry pressure coupled with truncated week saw profit booking in large caps. Reliance led the index to end lower by 74 points. Bank Nifty also closed lower by 180 points. Profit booking in ICICI and HDFC bank, along with Kotak, saw the index close lower. Tech Mahindra, Maruti and JSW Steel led the gainers.  Britannia, Kotak bank and Hindustan Unilever led the losers. The broader market was much better with the Nifty midcap 50 index up over 0.47%.

Technical View: Nifty is likely to find support at around 17750. 18050 is likely to act as resistance. Bank Nifty is likely to find support at around 41000. 41800 is likely to act as resistance on the upside. 

TRADING call (1-2 days) BUY Jindal Steel November future @ 450-453. Stop loss:  441.5.  Target: 461.

Derivative call- time period:(1 month): BUY Hindalco November future @ 398-402. Stop loss: 390. Target: 412.