Markets may begin the week on a flat note

5 Sep 2022 , 08:49 AM

Indian markets may start the week on a flat note. Asian markets have opened on a flat note today. India’s exports in August fell y-o-y by 1.15%. Its imports in the month increased y-o-y by 36.2%. In the month of August , US economy added 315,000 jobs. This is the lowest number of job additions since April 2021. Adverse economic impact of hawkish stand of US Federal Reserve regarding interest rate hikes has started becoming visible.

US markets saw another volatile session on Friday. Job numbers saw mixed reaction with markets rallying initially only to fall sharply by the end of the day. Dow Jones swung over 840 points to end lower by 337 points. Nasdaq swung 372 points before closing lower by 150 points. Bond yields closed near 3.19%. US dollar edged higher to close near index level of 109.20.
 
Asian markets have opened muted today, with the US markets closed today for a holiday. Japanese ‘Nikkei’ is trading lower by 70 points even as the Yen hit 140 to the US dollar, seeing exporters make up for the fall in broader markets. The other indices are trading mixed as markets await further data from the US even as the US indices see a sharper than expected correction.

Nifty saw another volatile session on Friday with swings of over 165 points before closing flat. Bank Nifty edged out gains of over 119 points. The star was the mid-cap index. Nifty small-cap 250 index closed higher by 0.25%. Adani Port, HDFC, ITC led the gainers. BPCL, Shree Cement and Hindalco saw profit booking.

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 38800 while 39800 is likely to act as resistance level.

TRADING call (1-2 days) : BUY Vedanta Ltd September future at 256-258. Stop loss: 252.35. Target: 263

Derivative call- time period:(1 month) : BUY Tata Communications September future @ 1240-1250. Stop loss :1220.10. Target: 1270