Indian equity markets may see profit booking today

2 Dec 2022 , 08:54 AM

Indian equity markets may see some significant profit booking today, after the gains of last two days. Asian equity markets have opened mostly in red today. 

US markets saw consolidation yesterday.  Dow Jones closed lower by 194 points. Nasdaq closed higher by 14 points. Bond yields hit fresh new near-term low of 3.52%. US dollar index fell to 104.79. Oil prices saw sharp bounce to US$89. Weakness in US dollar saw buying interest in commodities.

Asian markets have opened in the red today.  Japanese ‘Nikkei’ is down by 500 points in early trade. Profit booking, after the sharp weekly rally, is being seen in most Asian indices. Chinese stocks will be in action as China opens up after the severe lockdowns.

Nifty saw a day of history being created, yesterday. All large indices namely, Nifty, Bank Nifty & Sensex hit fresh new all-time highs. Nifty ended the day up by 54 points. Bank Nifty ended flat. Large cap banks saw profit booking led by ICICI Bank & Kotak bank. Nifty gainers were Ultratech cement, Hindalco & Tata Steel.  Losers were ICICI Bank, Cipla & UPL. Mid-caps saw strong traction. Nifty midcap 100 index was up by 0.77%.

Technical View: Nifty is likely to find support at around 18550. 18950 is likely to act as resistance. Bank Nifty is likely to find support at around 43000.  44000 is likely to act as resistance on the upside.

TRADING call (1-2 days) BUY Petronet December future @ 212-213. Stop loss: 208.25.  Target: 217.

Derivative call- time period:(1 month) BUY ONGC December future @ 141-142. Stop loss: 138.65. Target :144.5.