Markets may begin the day in red

11 Oct 2022 , 08:34 AM

Indian markets may again begin the day today in red. Cues from other foreign markets are largely negative today. US markets closed in red yesterday. Most Asian markets have opened in red today. Fears of economic recession have slowed down the rise in oil prices, that was seen in the last few days. JP Morgan CEO Jamie Dimon has said that he expects the US economy to enter into recession in the next 6 to 9 months. 

US markets fell for 4th consecutive day. Dow Jones closed lower by 90 points. Nasdaq fell 110 points to new lows of the year. Bond yields remained near 3.84%. Oil futures saw some profit booking. US dollar index closed near 112.5 after hitting 113.5. Expectations of 75 basis points hike in November is getting built in 

 Asian markets have opened in the red. Japanese ‘Nikkei’, which reopened after a holiday, is trading lower by over 440 points in early trade. Yen hit 144 to the US$ mark. Both Taiwan & South Korean markets have also joined the sell-off in technology stocks, with big falls in early trade. However, ASX & New Zealand indices are trading higher as they react to better earnings.

Nifty saw another volatile day with the index falling over 1.5% or 250 points before seeing a smart intra-day recovery. This saw the index close lower by 73 points. Bank Nifty was down over 700 points before closing, down by 85 points.  Large cap banks led the rally with Axis, IDFC First and SBI leading the gainers. TCS’ results beat expectations & could see green upside today. Short covering coupled with buying saw IT stocks react positively.

Technical View: Nifty likely to find support at around 17100.17450 is likely to act as resistance. Bank Nifty likely to find support at around 38700. 39800 is likely to act as resistance on the upside. 

TRADING call (1-2 days) : BUY Infosys October future at 1445-1465. Stop loss: 1425. Target: 1490.

Derivative call- time period:(1 month): BUY Grasim October future at 1674-1678. Stop loss: 1642. Target: 1712.