Indian equity markets may see another day in red today

17 Jun 2022 , 08:25 AM

Indian equity markets look all set for another day in the red today. US equity markets saw very sharp declines yesterday. Fears of global recession have materialized after the central banks of UK and Switzerland also increased their interest rates. SGX Nifty has opened in the green today. It is up by .06% since morning.

US markets saw another sell off as markets felt that Federal Reserve tightening and raising of rates could see recession by 2023. Bond yields fell sharply to 3.24% while US dollar saw big decline from 105 to almost 102.8 level, its largest decline in over 3 months.
 
 Asian indices have opened in the red led by the Japanese ‘Nikkei’ which was down over 550 points in early trade after the rally yesterday.Most other Asian markets are trading muted despite the sharp fall in the US dollar and bond yields. Chinese stocks will see action as most regions ready to reopen after the Covid lockdowns.
 
Nifty saw another volatile session with the index falling over 500 points from the highs of the day as foreign selling & derivative weekly expiry saw near term capitulation play out.The index opened strong up over 150 points but closed down by 330 points with the Bank Nifty closing lower by 720 points.Metals,IT & media led the losers with Hindalco, Tata Steel & Ongc being the big losers.Mid cap indices also saw weakness. Nifty smallcap index was down 3.42%. 
 
 
Technical View: Nifty likely to support at around 15250 while 15850 is likely to act as resistance on the upside.Bank Nifty likely to find support at  around 32300 while 34500 is likely to act as resistance.
 
TRADING call (1-2 days) BUY Navin Fluoro June future @ 3500-3520, stop loss 3439.65 & target 3600
 
 
Derivative call- time period:(1 month):  BUY TItan June future @ 2050-2060, stop loss 2008 & target 2110