Markets may begin the day in red

19 Aug 2022 , 08:35 AM

Indian markets may start the day in red. Oil prices increased yesterday. US dollar has strengthened. All these factors are negative ones for Indian equity markets. On the other hand foreign investors have once again turned net buyers in the Indian markets on a more regular basis. This is a very positive factor for the markets. Due to likely profit booking, markets may remain in red during the early trading hours.

US markets saw a day of volatile trade. Indices managed to close in the green after Dow Jones saw intra-day dip of over 180 points to close up by 20 points. Nasdaq closed higher by 18 points after seeing 3 days of profit booking. Bond yields closed near 2.87%. Oil prices rebounded to close above US$91.

 Asian markets have opened muted with Friday blues seeing most markets trade flat even as the Japanese ‘Nikkei’ is trading higher by around 90 points. Strengthening of US dollar ,which closed @ 107.63, could see some profit booking as Federal Reserve minutes indicate higher rates in September. This could see Chinese stocks remain under pressure.

Nifty saw another day of closing in the green. The index closed at around 18000 as it saw a sharp rebound after the morning sell-off. Banks led the gainers. Kotak Bank, IndusInd & L&T led the gainers. Profit booking was seen in Dr Reddy’s ,UPL & BPCL. Nifty next 50 closed higher by 0.61%. This indicates that the momentum has moved into the mid cap space.

Technical View: Nifty likely to find support at around 17660 while 18050 is likely to act as resistance on the upside. Bank Nifty likely to find support at around 39200 while 39900 is likely to act as resistance.

TRADING call (1-2 days) : BUY AXIS BANK August future at 766-768. Stop loss: 751.50.  Target: 782.5 

Derivative call- time period (1 month) : BUY UPL August future at 775-777. Stop loss : 760.40. Target :792.