Indian markets more likely to open in the red than in the green today

25 May 2022 , 08:53 AM

SGX Nifty is up by 0.51% at around 8:55 a.m. Indian time.  Indian markets are more likely to open in the red than in the green on the back of news of increased government intervention in the economy in the form of measures such as curbs on sugar exports.
 
US markets see another volatile day with technology stocks falling to new lows on fears of slowdown. These fears were exacerbated by an email from Snap chat founder to the employees that macroeconomic slowdown will slow growth at the company. This e-mail also said that the company may miss its revenue and earnings growth estimates in the second quarter because of this. Near term capitulation was almost visible in Nasdaq with Apple, Amazon & Meta falling like nine pins. Dow Jones saw remarkable recovery from being down by 550 points to closing the day up by 50 points, as value buying saw stocks rally. 
 
 
Asian indices have opened mixed. Japanese ‘Nikkei’ is trading in the flat to mildly negative territory. Taiwan, ASX & South Korean markets are trading in the green. This amidst Dow Jones’ sharp recovery yesterday; some good corporate results have resulted in US futures trade in the positive zone today. Chinese stocks are seeing good ETF flows as reopening instills confidence that the worst maybe behind for stocks.
 
Nifty saw another weak day yesterday as profit booking set in, as US futures traded sharply lower yesterday, which in turn hurt sentiments. Foreign selling continued unabatedly with Nifty seeing a decline of nearly 90 points by the end of the day. This as IT stocks led the losers along, along with Hindunilever & Hindalco. Losses in these stocks neutralized the gains of  banking stocks with Bank Nifty closing in the green. Mid caps are seeing near term capitulation with indices falling daily & stocks seeing exceptional weakness.
 
 
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 33800 while 34800 is likely to act as resistance level on the upside.
 
 
TRADING call (1-2 days) : Buy Maruti May futures at 7775-7825; stop loss: 7644;  and target: 7956
 
 
Derivative call- time period:(1 month): BUY TVS Motors May future at 704-710; stop loss : 692.8; and target: 722