Indian equity markets very likely to open in Red today

2 Aug 2022 , 08:29 AM

Indian markets are very likely to start the day in Red. Some heavy profit booking may be seenUS markets saw another volatile day with Dow Jones swinging over 332 points in intra-day trade before closing lower by 47 points. Nasdaq also gyrated over 228 points before closing lower by 22 points .Oil prices traded near US $93. Bond yields hit 4 month lows of 2.54%.

Asian markets have opened weakly as profit booking is being seen across the board, led by the Japanese ‘Nikkei’ which is down over 350 points in early trade. Yesterday, the data from Hong Kong pointed to another recession as GDP contracted for 3rd straight quarter. Chinese stocks listed in Hong Kong have been under pressure and may continue to underperform.

Nifty saw another super day with foreign buying lifting the sentiment as the feeling of missed out saw fence sitters join the rally. Nifty closed higher by another 180 points, above 17340 mark. Bank Nifty also closed with gains of 411 points with mid caps seeing huge outperformance. Nifty smallcap 100 index closed higher by 1.81%.

Technical View: Nifty likely to find support at around 17100 while 17450 is likely to act as resistance on the upside. Bank Nifty likely to find support at around 37400 while 38200 is likely to act as resistance.

TRADING call (1-2 days) : BUY Grasim August future at 1555-1565. Stop loss : 1528.10. Target: 1595 

Derivative call- time period:(1 month) : BUY RBL Bank August future at 95.5-96.5. Stop loss: 94.15. Target: 98.5