Indian markets look set to open in red today

23 Aug 2022 , 08:35 AM

Indian markets are very likely to open in red today. US markets closed in red yesterday because of concerns that US Federal Reserve will go for an aggressive rate hike in September. Dow Jones closed down by 1.91%. Nasdaq closed down by 2.55%. Oil prices remained at around $90 per barrel. US dollar has strengthened further against the Euro. Euro has touched a 20 year low against the dollar.

Asian markets have opened in the red, following the overnight cues from US markets. Japanese Nikkei is down by 1.25% since morning. South Korean Kospi is down by 0.71%. Shanghai index is down by 0.71%. Chinese stocks were star performers yesterday as the Central Bank cut repo rates to spur growth which saw reality & banks leading the gainers.

Nifty saw a sharp correction as it lost all of last week’s gains in 2 days’ sell off. The overbought run of the market was signaling some weakness which played out yesterday with the index losing over 260 points. Bank Nifty also led the losers, ending lower by over 680 points. The broader market also saw losses with the Nifty midcap 50 index losing over 2%.
Technical View: Nifty likely to find support at around 17300. 17850 likely to act as resistance on the upside. Bank Nifty likely to find support at around 38200. 39000 is likely to act as resistance .

TRADING call (1-2 days) : BUY L&T August future @ 1870-1880. Stop loss: 1837. Target: 1913. 

Derivative call- time period:(1 month):  BUY Ashok Leyland  August future @ 141-142. Stop loss: 138.65. Target: 144.5