Markets likely to start the day in green

31 Oct 2022 , 08:46 AM

Indian equity markets are likely to start the day in green today. US markets closed strongly in the green on Friday. Most Asian markets have started the day today on a positive note. Markets may also see volatility because of the upcoming Federal Reserve announcement on next interest rate hike. This decision is likely to be announced on Wednesday. For the week ending on October 21st, India’s foreign exchange reserves touched their two week low, at $ 524.52 billion.  Larsen & Toubro, Bharti Airtel, Tata Steel etc will announce their September quarter results today. This will also have some impact on the course of market movement today.

US markets saw another superb day, on Friday, to end the best week in over 3 years. Dow Jones gained 830 points. Nasdaq gained 310 points. October could turn out to be the best month since November 2020 for Dow Jones. The index has gained nearly 11% in the month. Bond yields closed near 4%. US dollar rebounded from Thursday lows. US dollar index closed near 110.5.

 Asian markets have opened in the green. Japanese ‘Nikkei’ is up by over 340 points in early trade. Most other Asian indices are trading higher. Profit booking is also being seen in many Asian markets. ETF outflows are also taking place due to underperformance of Chinese stocks.  

Nifty saw a quiet start on Friday to the new series. The index swung 120 points before closing higher by 49 points. Bank Nifty was the loser because of profit booking. The index fell due to selling pressure in Federal Bank, ICICI and Bandhan Bank. Reliance, Maruti and NTPC led the gainers. Tech Mahindra, Tata Steel and Sun Pharma also saw profit booking. 

Technical View: Nifty is likely to find support at around 17750. 18150 is likely to act as resistance. Bank Nifty is likely to find support at around 41000. 41800 is likely to act as resistance on the upside. 

TRADING call (1-2 days): BUY Canfin Home November future @518-521. Stop loss: 509.25. Target: 530 .

Derivative call- time period (1 month): BUY Bajaj Finserv November future at 1655-1665. Stop loss: 1626.80. Target :1695.