Indian equity markets may start the day in green

28 Nov 2022 , 08:52 AM

Indian equity markets may start the day in green today. Foreign Investors may provide buying support today. Friday saw some profit booking. This may be followed by some buying today. Asian markets have opened mostly in the red today. Protests have broken across China against Covid lockdowns. Any disruption in China diverts more foreign funds to Indian equity markets. 

US markets ended Friday’s curtailed session, with Dow Jones gaining 150 points. Nasdaq saw profit booking. It closed, down by 58 points. Bond yields closed near 3.66%. Oil fell another 3%. WTI crude is now at around $74 per barrel. US dollar index remained near 106.5, even as markets price in a 50 basis points hike in December.
 
Asian markets have opened weakly today. Almost all indices are trading in the red as Chinese unrest over Covid policy and upset in Taiwan local elections are seeing the markets react. Hang Seng index is down by over 4% . Taiwan index is down by 1.5%.

Nifty saw a day of little movement, as it consolidated, on Friday. This followed the big movement of Thursday. Nifty closed 27 points higher. Bank Nifty closed lower by 91 points. However, the broader market saw outperformance. Nifty small-cap 100 index closed higher by 1.12%. HDFC Life, Tata Motor and Hero Motors led the gainers. ICICI Bank, Kotak and Nestle led the losers.  

Technical View: Nifty is likely to find support at around 18350. 18650 is likely to act as resistance. Bank Nifty is likely to find support at around 42500. 43500 is likely to act as resistance on the upside. 
 
TRADING call (1-2 days) : Sell Hindalco December future @ 442-446. Stop loss: 452.8. Target: 435.

Derivative call- time period:(1 month) : Sell GNFC December future @ 610-615. Stop loss :625.25. Target: 600.