Indian markets may start the day in Green, on positive global cues

27 May 2022 , 09:02 AM

SGX Nifty has opened the day in the Green. 

US markets saw another strong day as earnings reports from large Corporates saw short covering/value buying emerge. Technology stocks lead the winners as Nasdaq rallied over 300 points while Dow Jones closed higher by nearly 520 points.US bond yields closed unchanged near 2.74% after hitting 3 month low of 2.70%. 
 
 Asian indices opened in the green led by the Japanese ‘Nikkei’ which traded higher by over 270 points in early trade. Overnight US cues have caused most Asian indices to trade in the green. The Hang Seng index which has been the worst performer in Asia also saw a big start up of nearly 3% in early trade. Chinese stocks could see near term buying as partial reopening gives opportunity to buy good stocks.
 
Nifty saw a superb derivative expiry as it rebounded from 15900 levels to close at the high for the day, nearly up over 300 points from day’s lows. Bank Nifty was the star for May, closing the month with a high of over 35200.  Banks led the gainers for much of the month. Metals led the gainers yesterday with Tata Steel & JSW Steel being the top gainers.  SBI & HDFC bank were the other big gainers. UPL, Divi’s Lab, Sun Pharma & Reliance saw profit booking. Mid cap index also saw a big swing from down 2% to close up by over 1.25%.
 
 
Technical View: Nifty likely to find support at around 15900 while 16500 is likely to act as resistance. Bank Nifty likely to find support at around 34500 while 35700 is likely to act as resistance on the upside.

 
TRADING call (1-2 days) BUY Hcl Tech June future @ 983-987, stop loss 965.35 & target 1005
 
 
Derivative call- time period:(1 month) BUY Godrej Prop June future @ 1292-1297, stop loss 1269.10 & target 1325