Indian markets may open on the positive note today

26 May 2022 , 08:58 AM

IIndian markets are quite likely to start the day today on a high note. SGX Nifty too has begun the day in the green. 

US markets saw a comeback day yesterday as Federal Reserve’s minutes of the meeting show that rate hikes are likely to be made to ease inflation but focus will remain on growth too. Dow Jones gained almost 200 points. Nasdaq saw over 170 points rise as technology stocks rebounded. Bond yields eased to lowest in over 3 months to 2.75%.
 
 Asian indices opened in the green led by the Japanese ‘Nikkei’. It was up 170 points in early trade. Overnight US cues have rubbed off positively on most Asian indices today. Taiwan & South Korea have also rebounded as metal stocks rise in tandem with good earnings from large players. Chinese stocks will see action as Government intervention in real estate sector could see revival in demand.
 
Nifty saw another weak day as derivative contracts expiry saw volatility rise with the index swinging by over 250 points. Metals, IT & mid cap banks led the losers while private insurance companies, Bharti and NTPC led the gainers. Mid-cap stocks saw their worst month since March 2020 as near-term capitulation saw these stocks fall like ninepins.
 
Technical View: Nifty likely to find support at around 15900 while 16500 is likely to act as the resistance level. Bank Nifty likely to find support at around 33900 while 34900 is likely act as resistance on the upside.
 
 
TRADING call (1-2 days) : Buy Ultratech June futures at 5810-5850; stop loss: 5713.5;  and target: 5950
 
 
Derivative call- time period:(1 month): BUY SAIL June future at 70.75-71.25; stop loss : 69.65; and target: 72.5