Indian equity markets may start the day in Green today

11 Aug 2022 , 08:48 AM

Indian equity markets may start the day in Green. Other Asian markets too have started the day in Green today. SGX Nifty is up by 1.08% since morning.  US inflation rate in July stood at 8.5%. This is slightly below expectations. It is also less than the 9.1% rate seen in June. This has raised expectations that Federal Reserve will go for a lower 50 basis point interest rate hike in September. 

US markets saw another big day yesterday as inflation reading beat expectations on the down side. This saw banks and technology stocks lead the rally. Dow Jones gained over 500 points. Nasdaq closed higher by 2.6%. US dollar saw sharp fall to 105.10 level. Bond yields closed near 2.79%.  

Asian markets have opened in the green led by the sharp rally in the US with inflation trajectory showing decline.  Taiwan and South Korean markets lead the gainers today as technology stocks lead the rally after the Nasdaq entered a fresh bull market, up by 20% from June lows.

Nifty saw another volatile day, ending with small gains as markets consolidated, as they waited for US cues on inflation. Foreign investors have been buyers in the month of August till now. This has improved sentiments. Nifty closed with gains of 9 points. Bank Nifty closed higher by 50 points. Metals and Private Banks led the gainers. IT and Realty stocks saw profit booking. Mid caps also saw weakness.

Technical View: Nifty likely to find support at around 17360 while 17800 is likely to act as resistance on the upside. Bank Nifty likely to find support at around 38000 while 38800 is likely to act as resistance.

TRADING call (1-2 days): BUY Ultratech cement August future at 6620-6640. Stop loss: 6496 . Target: 6770

Derivative call- time period (1 month) : BUY NMDC August future at 116-117. Stop loss : 114.05. Target: 119