Markets look set to begin the day on a positive note

8 Sep 2022 , 08:40 AM

Indian equity markets look set to start the day today on a positive note. Most other Asian markets have opened in green. US markets closed yesterday on a positive note. SGX Nifty is up by 0.69% since morning. Oil prices came down below $90 per barrel yesterday. This happened because of expected exacerbation of global economic slowdown in the coming days. 

US markets bounced back from oversold territory as markets now already discount Federal Reserve’s expected move on interest rate at the end of September. Dow Jones gained over 430 points. Nasdaq climbed over 240 points. Oil prices fell to lowest since December 2021 as demand contraction saw fall in prices. US dollar also saw profit booking after hitting 24 year highs versus Euro to close at the index level of 109.45
 
 Asian markets have opened in the green led by the Japanese ‘Nikkei’. Nikkei has rallied over 450 points in early trade. The undertone change seems positive with US dollar strengthening now being already discounted by most Asian markets. Stocks see buying interest across the board with both Taiwan & South Korean markets joining the rally.

Nifty saw another volatile day yesterday with early morning weakness being bought into by foreign investors. Foreign investors have started buying every time the market falls as the feeling of having missed out looms large in the Indian context. Nifty saw swings of over 166 points before closing lower by 30 points.  Bank Nifty saw gyrations of over 300 points before closing lower by 210 points. Cement stocks led the gainers with Shree Cement & Ultratech. Adani Port and Coal India also joined the winners. Tata Motors, M&M, IndusInd & Bajaj Auto led the losers with auto stocks seeing profit booking.
 
Technical View: Nifty likely to find support at around 17400 while 17850 is likely to act as resistance on the upside. Bank Nifty likely to find support at around 39000 while 40000 is likely to act as resistance.

TRADING call (1-2 days) : BUY Escorts September future @ 1900-2000. Stop loss: 1954. Target: 2035

Derivative call- time period:(1 month) BUY AB Capital September future @ 115-116. Stop loss :113.05 .Target :118.