Indian markets may open in the red, due to profit booking

10 Jun 2022 , 08:16 AM

Indian markets may start the day today in red. Due to the gains seen yesterday, some degree of profit booking is likely to be seen in early trade. Many investors are likely to make short term gains, by selling their stock holdings. Cues coming from other foreign equity markets are also negative today.  SGX Nifty is also in the red today, down by 1.49%.

US markets saw sell off as rise in yields and climbing inflation globally saw stocks weaken. Dow Jones fell over 600 point. Nasdaq fell over 2.7%, as it closed near the day’s lows. Bond yields closed near 3.04%. Oil prices remained firm near US$121.
 
 Asian indices have opened weakly on the back of weak US cues.  Japanese ‘Nikkei’, which was seeing good gains this week, is trading lower by 350 points as weekend blues see market sentiment at its weakest.South Korea and ASX markets are also trading lower as ETF selling saw weekly gains get wiped out.Chinese stocks will also see pressure as Covid cases see partial lockdown in Shanghai.
 
Nifty saw another volatile day as weak US cues saw the index open lower by around 115 points only to see strong rebound by the end of the day. It closed up by over 121 points.Bank Nifty also saw intra day swings of over 500 points  before closing higher by over 130 points. Dr Reddy, BPCL and Reliance led the gainers. Tata Steel, Shree Cement and Grasim led the losers. Nifty next 50 index also closed higher by 0.78%, showing the broader market gains.
 
 
Technical View: Nifty likely to find support at around 16200 while 16700 is likely to act as resistance on the upside. Bank Nifty is likely to find support at around 34400 while 35500 is likely to act as resistance level.
 
TRADING call (1-2 days):  Sell LIC Housing June future at 340-344. Stop loss: 348.75.  Target: 335
 
 
Derivative call- time period:(1 month):  Sell PEL June future at 1735-1745.  Stop loss: 1774.  Target: 1705