Indian markets may start the day in Green today

13 Jul 2022 , 08:05 AM

After the sell-off seen yesterday, Indian equity markets may start the day in Green today. Investors are likely to do more value buying today than profit booking. SGX Nifty is also in the green today. It is up by 0.37% since morning. US June inflation data will come later in the evening today. Markets seem to have factored in another high rate of inflation in June in US. India’s Industrial Production grew year-on-year by 19.6% in May 2022. But this high growth rate is mainly because of the low base effect of May 2021.

US markets ended in the red as participants got cautious before the inflation number expected today in US. Inflation in June is expected to be near 8.8%.Dow Jones fell 190 points after seeing intra day swings of over 486 points. Nasdaq lost 100 points after seeing swings of 278 points. Oil prices slid over 9% to close near US$93. Bond yields declined to close near 2.95%.
 
 Asian markets have opened in the green today after the sell-off of yesterday. Japanese “Nikkei” is trading higher by 170 points in early trade.The star for the day today is Taiwan which is up by over 350 points in early trade as semiconductor stocks see earnings upgrade. Chinese stocks will be in action as internet related plays see ETF flows on expectations of better earnings.
 
Nifty saw another day of weakness with last hour sell-off by foreign investors seeing the index close lower by 150 points.This as rupee hit new low against the greenback which saw profit booking getting accentuated.The breadth was negative with intra day recoveries being sold into as profit booking saw mid caps also join the weakness.Metals, IT and select auto stocks were the main losers. NTPC, Coal India and Shree Cement led the gainers. 
 
Technical View: Nifty is likely to find support at around 16000. 16400 is likely to act as resistance on the upside. Bank Nifty is likely to find support at around 34500 while 35500 is likely to act as resistance.
 
TRADING call (1-2 days) : BUY Chola Finance July future at 618-622. Stop loss: 607.7. Target: 633
 
Derivative call- time period:(1 month): BUY Kotak Bank July future at 1715-1720. Stop loss: 1682.  Target: 1752