Markets all set to open in red

29 Aug 2022 , 08:40 AM

Indian markets are highly likely to open in red today. US Federal Reserve Chairman Jerome Powell on Friday said that the Federal Reserve will opt for controlling inflation even if it meant prolonged period of economic slowdown. This resulted in US markets seeing one of the biggest falls in the past few months on Friday. Asian markets have opened heavily in red today. Today may be a good time for investors with long term horizon to buy stocks at cheaper valuations.

US markets saw the biggest fall in over 4 months, on Friday, as Federal Reserve Chairman’s eight minutes speech rattled the markets. Dow Jones fell 1000 points. Nasdaq fell almost 500 points. Bond yields spiked to 3.06%. Two year bond yields hit 3.40%.
 
Asian markets have opened in the red with nowhere to hide.  Japanese ‘Nikkei’ is trading down by over 800 points in early trade. Yen has hit its lowest level against the US$ in over 15 years. Taiwan markets are down over 400 points in sync with the selloff in Nasdaq of technology stocks. Chinese stocks will be under pressure with internet related plays seeing selling pressure.

Nifty saw another day of volatile trade as the index swung over 165 points to close marginally in the green, up by 36 points. Bank Nifty closed flat after being up by over 350 points as profit booking in Indusind, Axis Bank & Bandhan Bank saw morning gains get sold into. Mid-caps bucked the trend. Nifty small cap index closed higher by 0.70%.

Technical View: Nifty likely to find support at around 17200 while 17950 is likely to act as resistance on the upside. Bank Nifty likely to find support at around 38000 while 39200 is likely to act as resistance.

TRADING call (1-2 days): Sell Infosys September future @ 1520-1530. Stop loss :1555.5. Target :1490. 

Derivative call- time period:(1 month): Sell Mphasis September future @ 2170-2190. Stop loss: 2223.5. Target : 2135.