Markets likely to open in Red today

9 Jun 2022 , 08:14 AM

Indian markets are once again likely to open in the red today. US equity markets closed in the red yesterday. Most Asian markets have opened in the red today. SGX Nifty too is in red, down by 0.5% since morning. Selling by FIIs is likely to continue today. Domestic investors may not be able to provide buying support against FII selling. Further rise in oil prices adds to the negativity that is prevailing all around.

US markets saw profit booking as higher bond yields & rise in crude oil price dampened sentiments, ahead of the Federal Reserve meeting next week.Dow Jones closed lower by 260 points. Nasdaq closed lower by 86 points.US bond yields closed at 3.04%. Oil prices saw further sees further rally to US $122 per barrel.
 
Asian indices have opened weak today on the back of US cues, with most indices trading in the red.The Japanese ‘Nikkei’ continues to be an outlier as weakness in Yen sees buying in export related stocks as the index trades flat. Chinese stocks listed in the US are seeing good buying interest as Chinese technology stocks are giving very good value buying opportunity.
 
Nifty saw another volatile day as Reserve Bank policy saw swings of over 320 points with the Central Bank raising repo rates by 50 basis points. Nifty closed lower by 60 points . Bank Nifty which swung over 600 points closed down by 50 points. This as foreign investors continued to sell aggressively. Mid caps again saw weakness with 4th consecutive day of declines.
 
 
Technical View: Nifty likely to find support at around 16200. 16700 is likely to act as resistance on the upside. Bank Nifty likely to find support at around 34600. 35750 is likely to act as resistance.
 
TRADING call (1-2 days): Sell Asian Paints June future at 2690-2710. Stop loss: 2754.  Target: 2645
 
 
Derivative call (time period:1 month): Sell Berger Paints June future at 575-580. Stop loss: 589.5. Target: 566