Markets likely to open in the red

14 Jun 2022 , 07:55 AM

Indian markets are likely to see another opening in red today. India’s inflation rate in May has come down marginally over that in April. But this is not enough to give any boost to market sentiments. Global cues are all negative. US markets closed deep in the red yesterday. Asian markets have opened in the red today. SGX Nifty is also in the red, down by 0.60% since morning.

US markets sell off deepened with Dow Jones down another 850 points. Nasdaq fell over 500 points as markets fear the Federal Reserve to hike rates higher then expected. Bond yields hit fresh 3 year highs at 3.35% indicating 50% chances of 75 basis points rate hike by the Central Bank tomorrow.
 
 Asian indices have opened weak with the Japanese ‘Nikkei’ down another 450 points after the big drubbing yesterday. ASX  has taken it on the chin as the index fell over 5% in early trade.Most other Asian markets are trading near 3 month lows as strength in US$ and ETF selling see stocks fall sharply. Chinese stocks are rather better performers in this carnage as they fell mildly in early trade.
 
Nifty saw another weak day yesterday with the index falling over 500 points before last hour buying saw it close, down by 427 points. Bank Nifty was the main loser, down by 1078 points as banks saw big sell off by the foreign investors on the back of rising yields in the US. Bajaj Finance, Bajaj Finserv, Tata Motors and Indusind bank were the big losers. The only gainers were Nestle and Bajaj Auto. Mid caps also saw collateral selling pressure. Nifty Small cap 100  index also ended down 3.8%.
 
 Technical View: Nifty likely to find support at around 15550. 15900 likely to act as resistance on the upside. Bank Nifty likely to find support at around 33000 while 34500 likely to act as resistance.
 
TRADING call (1-2 days):  BUY SBI CARDS June future at 735-40. Stop Loss: 722.7. Target:753
 
 Derivative call- (time period 1 month) : BUY Tata Consumer June future at 733-737. Stop Loss: 720.30. Target: 750