Markets likely to open in green today

18 Oct 2022 , 08:47 AM

Indian equity markets are likely to start the day in green today. US markets ended strongly in green, yesterday. Asian markets have opened in green today. Dollar has weakened somewhat against other currencies. One of the members of RBI’s Monetary Policy Committee has said that rate hikes should be stopped in order for the economy to recover. This may give some hope that RBI may slow down on interest rate hikes. 

US markets saw another superb day of comeback yesterday. Dow Jones rallied 670 points, intra-day, before closing higher by 550 points. Nasdaq gained 354 points as bulls came back with vengeance. US dollar index fell over 1.5% to 112.  Oil prices retreated.  Banks & financial services stocks outperformed. 

 Asian markets have opened in the green. Japanese ‘Nikkei’ is up by over 200 points in early trade. ASX index has gained over 1.5%. Most other Asian indices are trading higher. Weaker US$ is causing positive inflows , through ETF flows, into the markets.

Nifty saw another volatile day yesterday.  Morning dip was bought into. The index saw buying coupled with huge short-covering. This drove the index higher by 126 points. Bank Nifty led the gains. SBI, Bajaj Finserv and Axis bank led the gainers. Hindalco, L&T  and JSW Steel saw selling pressure.

Technical View: Nifty likely to find support at around 17100. 17500 is likely to act as resistance. Bank Nifty likely to find support at around 39200. 40300 is likely to act as resistance on the upside. 

TRADING call (1-2 days) :BUY AB Capital October future at 110.5-111.5. Stop loss: 108.65. Target : 114.

Derivative call- time period:(1 month): BUY PNB October future at 37-37.25. Stop loss: 36.30. Target: 38.