Markets may begin the week in Red

25 Jul 2022 , 08:41 AM

Indian equity markets may start the week in red. After the gains of last week, there may be some profit booking today. SGX Nifty is also trading in the red today. It is down by 0.16% since morning. 

US markets saw profit booking on Friday. Nasdaq saw over-bought readings with select results’ disappointments. It lost 200 points.Dow Jones also fell over 135 points as investors booked profit after the best July in last 6 months.

 Asian markets have opened mixed with the Japanese ‘Nikkei’ trading lower by 150 points. South Korean and ASX markets tarde flat as markets await the Federal Reserve meet this Wednesday on policy rates and forward guidance on inflation trajectory.Chinese stocks could see buying as US dollar sees weakness. This could bode well for Yuan led buying in Chinese stocks.

Nifty saw another day of gains with the index crossing 16700 with ease. Banks led the rally on short covering/value buying. Bank Nifty closed above the technical level of 200 day moving average, gaining 537 points. Banks, financial services and FMCG led the gainers .IT  and pharma stocks saw profit booking. Mid caps also saw gains with the Nifty next 50 closing higher by 0.57%

Technical View: Nifty likely to find support at around 16200 while 16850 is likely to act as resistance on the upside. Bank Nifty likely to find support at around 36000 while 37000 is likely to act as resistance.

TRADING call (1-2 days) : BUY Tata Motors July future at 453-457. Stop loss: 445.90. Target: 464.5

Derivative call- time period:(1 month) Sell Reliance July future at 2490-2510. Stop loss :2550. Target: 2450