Indian markets likely to open in the red again today

7 Jun 2022 , 09:19 AM

Indian markets are likely to open in the red again today. This may happen because of continued selling by Foreign

Portfolio Investors. Most other Asian markets have also opened in red. SGX Nifty is also down today. It has lost

0.20% since morning.

US markets started the week with high volatility as Dow Jones gave up gains of over 320 points to close flat. Nasdaq

saw intra-day swings of over 250 points before closing higher by 50 points. This as bond yields climbed over 3%

with expectations of rate hikes continuing till September. Oil prices reacted after hitting $120 per barrel to close

mildly lower at $118 per barrel.

 Asian indices have opened mixed with the Japanese ‘Nikkei’ trading higher by over 50 points. Most other indices are

trading in the red on the back of volatility in US markets the previous day, due to profit booking there. The Japanese

‘Yen’ hit a 20 year high against the US dollar. This saw most large Japanese companies, which have their operations

in US, do well as appreciation in Yen against the Dollar means more gains on treasury income for these companies.

Chinese stocks reacted well to the reopening with the Hang Seng gaining over 2% yesterday.

Nifty saw another volatile day with the index seeing a weak opening, down by over 130 points. It recovered all the

losses to close flat at the end of the day. This as banks led the recovery. Bandhan, Federal & Kotak were among the

gainers as Bank Nifty closed in the green, after being down by over 300 points .Bajaj Auto, Tata Consumer and JSW

Steel led the Nifty gainers. Shree Cement, BPCL & Asian Paints saw profit booking and led the losers. The mid cap

indices also closed almost flat with the Nifty midcap 100 closing lower by 0.17%

Technical View: Nifty likely to find support at around 16350. 16850 is likely to act as resistance level. Bank Nifty is

likely to find support at around 34800 while 36000 is likely to act as resistance level.

TRADING call (1-2 days): BUY Ambuja Cement June future at 365.5-366.5. Stop loss :358.65. Target: 373.5 

Derivative call- time period:(1 month): SELL Bajaj Finserv June future at 12500-12600. Stop loss: 12801. Target:

12300