Markets look set to start the day strongly in green

4 Oct 2022 , 08:48 AM

Indian markets look set to start the day in green today. US markets closed strongly in green yesterday. Asian markets have opened in green today. Foreign Portfolio Investors turned net buyers yesterday in Indian equity markets. Oil prices again increased yesterday. This is a negative factor for Indian equity markets.

US markets rebounded in style yesterday. Dow Jones gained over 765 points. Nasdaq climbed over 240 points. Bond yields fell to 3.68%. Oil saw smart rally of over 3%. Brazilian ‘Bovespa” index gained over 6% to record its best rally in over 6 months as many emerging market stocks bounced back strongly.  

 Asian markets have opened in the green today. Japanese ‘Nikkei’ is trading higher by over 650 points in early trade as US cues turned positive. Most other Asian indices are bouncing back smartly. Chinese stocks are also likely to join the rally as relief measures for troubled realty sector get major boost from the Government.

 Nifty saw another volatile day yesterday with most investors sceptic of the one-day huge rally seen on Friday. Even though foreign investors turned buyers after a long selling bout, local mutual funds booked profits. Nifty fell over 200 points with auto & banks leading the sell off as profit booking was seen across the board. Adani Ent, Eicher Motor, Tata Consumer and Maruti led the losers. ONGC, Dr Reddy’s, Cipla and BPCL led the gainers.

Technical View: Nifty likely to find support at around 16800 while 17300 is likely to act as resistance. Bank Nifty likely to find support at around 37900. 39000 is likely to act as resistance on the upside. 

TRADING call (1-2 days): BUY Adani Port October future at 785-790. Stop loss: 771.35. Target: 805.

Derivative call- time period:(1 month) : BUY Federal Bank October future at 116.5-118.5. Stop loss : 115.1.  Target : 120.