Indian equity markets may start the day in red

23 Sep 2022 , 08:51 AM

Indian markets may begin the day in red today. Markets may see more selling by Foreign Portfolio Investors. Yesterday, foreign investors were net sellers of Rs 2,511 crore in Indian equity markets. Government has said rice prices are expected to increase further. This is a negative news for food inflation and overall inflation. Oil prices increased yesterday as Iran nuclear deal looked going off-track.

US markets saw another weak day with technology stocks seeing weakness continue. Nasdaq lost another 150 points. Dow Jones closed lower by 100 points. Pessimism on recession from higher interest rates saw sentiments at its worst since May. Bond yields hit 14-year highs at 3.60%. US$ index hits another all-time high at 111.5 . 
 
 Asian markets have opened in the red but are seeing early losses get wiped out. Markets now are adjusting to Federal Reserve’s view with inflation. Some market participants are also assuming that the bark maybe worse than the bite. The Japanese ‘Nikkei’ is down 100 points. The Nikkei is under pressure as yen hit fresh new 40-year highs against the US dollar. Taiwan and South Korean markets could see some comeback as auto demand sees traction. 

Nifty saw another volatile day with the index swinging over 200 points before closing lower by 88 points. Foreign ETF selling caused huge swings in the market. Bank Nifty was the main culprit as it lost over 800 points in intra-day before closing lower by 570 points. Power Grid, HDFC Bank, Axis Bank and HDFC were the big losers. HUL, Titan, Asian Paints and Maruti led the gainers. Mid-caps bucked the trend. Nifty small cap 50 index closed higher by 0.60%.
 
Technical View: Nifty likely to find support at around 17490.  17800 is likely to act as resistance on the upside. Bank Nifty likely to find support at around 40200. 41200 is likely to act as resistance.

TRADING call (1-2 days) : BUY Ultratech Cement September future @ 6250-6270. Stop loss : 6134.  Target: 6390

Derivative call- time period:(1 month) : Sell Bajaj Finserv September future @ 1770-1790. Stop loss :1815.5. Target: 1740