Markets look all set to open in red

14 Sep 2022 , 08:46 AM

Indian equity markets look set to start the day in red. US markets closed heavily in the red yesterday. US consumer price inflation for August stood at 8.3%. This may make the Federal Reserve go for higher interest rate hikes next week. Higher interest rate in US may cause significant capital outflows from equity markets of emerging countries such as India. 

US markets saw big losses as inflation continued to be sticky with numbers exceeding expectations. This has set the tone for the Federal Reserve to raise rates by 75 basis points next week. Bond yields spurt to close near 4-year highs @ 3.45%. US dollar regained strength. US dollar index close near 109.65.

 Asian markets have opened in the red following up on the sell-off in the US. Japanese ‘Nikkei’ is trading lower by 650 points. Taiwan markets is down by over 250 points in early trade. Higher food prices saw the inflation number in August hit 8.3 against the expectation of 8.1.

Nifty saw another superb day to close well above 18000. Foreign buying and improved sentiment saw the index hit 18000 for the first time since early April. Bajaj Finserv, Tata Consumer, Britannia led the gainers. Shree Cement, Cipla and Eicher Motors saw profit booking. Mid-caps also were in action. Nifty 100 gained over 0.73%.  
 
Technical View: Nifty likely to find support at around 17700. 18200 is likely to act as resistance on the upside. Bank Nifty likely to find support at around 40000 while 41000 is likely to act as resistance.

TRADING call (1-2 days) : Sell INFY September future @ 1530-1540. Stop loss :1565.65.  Target : 1500

Derivative call- time period:(1 month):  Sell Coforge September future @ 3570-3590. Stop loss : 3651.50 .  Target : 3508