Indian markets may see some losses today because of negative cues

6 Jul 2022 , 08:19 AM

Indian equity markets are likely to remain in red today. Yesterday prices of many commodities including crude oil fell significantly. This happened because fears of recession have started materializing. Federal Reserve Bank of Atlanta data shows that the US economy has already entered recession. A Nomura report yesterday has forecasted that rupee will fall to 82/dollar in the second quarter of 2022. All these factors add to the worries and may dampen market sentiments. For investors with a long term perspective this may be a good time to do buying in stocks that are currently trading at low valuations or prices.

US markets saw huge pullback yesterday. Dow Jones closed lower by 120 points after being down by over 730 points in intra day trade.Nasdaq closed higher by 195 points after being down by over 200 points in early trade. Oil prices saw biggest decline in over 4 months as crude slipped to below US$ 99 or by 10%. Bond yields hit lows of 2.80 % before recovering to close at 2.84%.
 
 Asian markets opened in the red today but have recovered some of the early morning losses. Japanese ‘Nikkei’ is trading lower by 150 points. ASX and New Zealand indices are trading in the green as lower crude prices see buying in equities with banks and IT stocks seeing good gains. Taiwan market is also expected to see gains as semi-conductor stocks see buying interest along with Chinese internet plays.
 
Nifty saw a volatile day as it hit 16000 in intra day trade and saw profit booking as weak US futures saw European stocks trade deeply in the red which led to the sell off locally. Nifty closed lower by 24 points after seeing intra day moves of over 240 points. Bank Nifty also gave up gains of over 450 points to close lower by 125 points.With crude prices falling, expect foreign buying to resume in bigger way as yesterday foreign investors turned net buyers after almost 2 months. 
 
Technical View: Nifty likely to find support at around 15750 while 16000 is likely to act as resistance on the upside. Bank Nifty likely to find support at around 33500 while 34500 is likely to act as resistance.
 
TRADING call (1-2 days) BUY Tata Chem July future at 802-806. Stop loss: 787.90. Target: 822
 
 Derivative call- time period:(1 month) : BUY Wipro July future at 414-417. Stop loss: 394.35 . Target: 424