Indian equity markets may start the day in green

6 Oct 2022 , 08:46 AM

Indian equity markets may start the day in green today. Other Asian markets have started the day in green. SGX Nifty is up by 0.46% since morning. Oil prices increased yesterday after OPEC+ announced that it will reduce oil supply by 2 million barrels per day. Any increase in oil price is always a negative for Indian equity markets and Indian economy. This can act as a dampener on market sentiments today. 

US markets saw huge swings yesterday as Dow Jones recovered from being down by over 2%, to close lower by 45 points. Nasdaq recovered from being down by 300 points, to close flat. Bond yields rose to 3.74%. Oil prices saw sharp rally as OPEC decided to cut output further from November. 

 Asian markets have opened in the green today. Japanese ‘Nikkei’ is up by over 200 points after the US indices staged a superb recovery from the lows of yesterday to close almost flat today. Emerging markets can see more inflows as economic recovery looks set to rebound in Asian economies. 

Nifty saw another superb day to follow up the gains for the 2nd day running. Nifty ended the day with the biggest gain in over 2 months, up by over 385 points. Bank Nifty climbed 1000 points. The stronger rupee coupled with superb rally in overseas markets saw bears scamper for cover. Both local and foreign investors turned buyers. Nifty midcap 50 index closed higher by over 3%. Mid-caps saw huge interest from retail investors.
 
Technical View: Nifty likely to find support at around 17000. 17500 is likely to act as resistance. Bank Nifty likely to find support at around 38500. 39900 is likely to act as resistance on the upside. 

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Derivative call- time period:(1 month) : BUY Canfin Home October future at 495-505. Stop loss: 490 .Target: 512.