Markets look set to open in red

7 Sep 2022 , 08:56 AM

Indian markets look set to open in red today. US markets closed in red yesterday. Most Asian markets have opened in red today. Oil prices came down yesterday as economic slowdown spreads from one country to another. SGX Nifty is down by 1.08% since morning.

US markets continued their losing streak yesterday. Nasdaq has been on the decline for the past 8 days. Such a consecutive period of decline was last seen in November 2016. Bond yield rose to hit 3.33%, the highest in over 5 months. US dollar hit fresh new all -time high, with dollar index at 110.3. Oil prices fell over 3% on expectations of lower demand due to a faltering European economy.
 
 Asian markets have opened in the red today following weak US cues where negativity index hit a new high as pessimism dawns deep on investors ahead of the inflation data and Federal Reserve meeting. Japanese Yen hit a 44 year low against the US$ at 143 / $. This will hurt local importers. Sentiments are therefore dampened, with the “Nikkei’ trading lower by 300 points. Taiwan and South Korean markets follow the weakness in technology stocks and are trending lower. 

Nifty yesterday saw another positive start getting sold into as profit booking took place later in the day. The index recovered all morning losses to close flat. Nifty saw swings of nearly 180 points in the day. Bank Nifty also saw intra-day swings of over 330 points before closing lower by 140 points. Metals and Reliance led the gainers. Profit booking was seen in FMCG, IT & private banks. Mid-caps shone for another day with Nifty Next 50 closing higher by 0.65%.
 
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 on the upside.

TRADING call (1-2 days): Sell Bajaj Finance September future @ 7100-7150. Stop loss: 7267 . Target : 6975.

Derivative call- time period:(1 month) : Sell Bajaj Finserv September future @ 17000-17100. Stop loss : 17390.  Target : 16700.