Markets likely to maintain their positive momentum today

29 Jul 2022 , 10:19 AM

Indian equity markets are likely to maintain their positive momentum today. Global cues from other equity markets are positive. Today may be a good day to sell stocks that were bought at lower valuations when the market was at its lows recently, for those with a short term trading horizon. 

US markets saw another big day as Dow Jones closed higher by 320 points. Nasdaq gained over 140 points. Nasdaq has gained over 15% from June lows to see the best monthly rally since October last year. US bond yields dipped to hit 2.68%, the lowest level since early May.

 Asian markets have opened in the green with US cues seeing gains in almost all Asian indices, led by the ASX & Taiwan markets. The weaker US dollar bodes well for Asian currencies, bonds & equities. This could see more ETF flows headed into Asian markets. Chinese stocks will also see action as yesterday the US rally was led by auto stocks and Chinese reopening. This should see more action in stocks.
 
 Nifty saw another super day with highest closing in over 4 months at near 16900 .Bank Nifty led the charge gaining over 594 points. Bajaj twins, Bajaj Finserv and Bajaj Finance, led the gainers along with Tata Steel & Kotak Bank.IT, Financial services and Realty led the gainers. Cement and Pharma stocks saw profit booking. Mid caps also joined the party with Nifty 100 closing with gains of over 1.67%.

Technical View: Nifty likely to find support at around 16500 while 17200 is likely to act as resistance on the upside. Bank Nifty likely to find support at around 37000 while 37900 is likely to act as resistance.

TRADING call (1-2 days) : BUY Tata Motor August future at 443-446. Stop loss :435. Target : 455

Derivative call- time period:(1 month) : BUY Mphasis August future at 2235-2245. Stop loss: 2195. Target: 2290