Indian markets likely to begin the day in Green today

4 Aug 2022 , 08:47 AM

Indian markets are likely to start the day in Green. Other Asian markets have begun the day today in Green. SGX Nifty is up by 0.27% since morning. As the day progresses, markets are likely to see some profit-booking too. RBI’s monetary policy meeting is going on. Many investors will sell off their positions before the decision on interest rate hike comes tomorrow. 

US markets saw another rip roaring day with Nasdaq jumping over 320 points or 2.6% to hit 12668. Dow Jones jumped over 413 points marking an 11% rally from June lows. Nasdaq entered fresh new bull market marking 20% rally from lows of 10565 in June. Bond yields hit 2.71%. Oil prices hit US$ 91, the lowest in over 6 months.

 Asian markets have opened in the green today led by the Japanese ‘Nikkei’ which is trading up by over 170 points. This is followed by gains in South Korean & ASX indices. Most Asian markets will see more ETF flows as weaker US dollar will see Asian equities outperform. Chinese stocks will see action as metals start to rebound as industrial activity picks up.
 
Nifty saw another volatile day with the index closing with gains for 5th straight day after seeing intra day dips of over 120 points. Bank Nifty saw profit booking to close in the red, down by  34 points, after being down over 300 points in intra-day trade. IT and consumer stocks led the gainers. Sun Pharma, Kotak Bank, Tata Motors and Coal India led the losers. Mid cap stocks saw profit booking with Nifty midcap 50 index closing lower by 1.2%.

Technical View: Nifty likely to find support at around 17200 while 17550 is likely to act as resistance on the upside. Bank Nifty likely to find support at around 37500 while 38400 is likely to act as resistance.

TRADING call (1-2 days): BUY L&T finance August future at 74.5-75. Stop loss: 73.20. Target :76.5

Derivative call- time period:(1 month): BUY India Energy Exchange (IEX) August future at 165.5-166.5. Stop loss: 162.60. Target:169.50