Indian equity markets may start the day in red today

25 Oct 2022 , 08:33 AM

Indian markets may start the day in red today. There may be some selling in initial hours due to profit-booking. Overall, the markets may see a mixed day today. There is now expectation among some quarters that US Federal Reserve may become less hawkish on inflation. Any moderation in the hawkish stand of Federal Reserve will be a welcome for Indian markets. 

US markets closed in the green yesterday. Dow Jones closed, up by 1.34%.  Nasdaq closed, up by .86%. S&P 500 closed, up by 1.19 %. NYSE closed, up by 0.58%. There is now expectation among some market participants that Federal Reserve may become less hawkish regarding inflation. This was one reason for US markets ending in green yesterday. Bond yield closed near 4.21%. US$ edged lower to 111.65. WTI crude fell to US$ 83.

Asian markets have opened mixed today. Japanese ‘Nikkei’ is up 250 points. Bank of Japan has intervened to stop the Yen from further weakness. A major sore point was the Chinese re-election of Xi Jinping.  This saw foreign investors selling Chinese stocks aggressively. Hang Seng index fell nearly 1000 points yesterday.

Nifty saw another day of close in the green on Friday. The strength seen on Friday extended into the ‘Muhurat’ Diwali session. The index closed higher by 150 points in ‘Muhurat’ session. Bank Nifty led the charge. It gained over 550 points. ICICI, SBI and IDFC First bank led the gainers. Profit booking was seen in Hindustan Unilever, Kotak Bank and HDFC Life. Mid-caps also saw strength. Midcap 100 index closed higher by 0.93%.

Technical View: Nifty likely to find support at around 17650. 17850 is likely to act as resistance on the upside. Bank Nifty likely to find support at around 40800 while 41800 is likely to act as resistance.

TRADING call (1-2 days) : Buy HPCL October future @ 206-208. Stop loss: 202.75. Target: 211.5.

Derivative call- time period:(1 month) :Buy Granules October future @ 342-345. Stop loss: 337.85.  Target : 331.5.