Markets may continue their positive momentum today

8 Jul 2022 , 08:22 AM

The positive momentum of the past two days may continue in the markets today. SGX Nifty is in the Green today, up by 0.81% since morning. US markets closed on a positive note yesterday. Asian markets have opened in the Green today. The expectation is strengthening that with with many countries already in recession, central banks may become less hawkish regarding increasing interest rates.

US markets ended higher as talks of huge China stimulus fuelled rally with the bull back in charge. Oil rose with metals as oversold levels saw huge short covering/value buying, driving up the prices. Bond yields also rose to 3%.  
 
 Asian markets have opened in the green led by the Japanese ‘Nikkei’ along with the South Korean and ASX markets as bulls came back in force after the China stimulus talks. Markets expect a soft landing by the Federal Reserve on rates as it controls inflation and tries to avoid recession.
 
Nifty saw another superb day as it crossed 16100 and closed at 2 month highs with bulls back in force.Metals led the rally with last hour buying in Tata Steel and Hindalco, seeing them gain over 6% as talks of China stimulus saw metals jump.Bank Nifty also saw another big day with the index almost hitting 35000.Mid caps also joined the party. Nifty smallcap 100 index gained over 1.5%.
 
Technical View: Nifty likely to find support at around 16000 while 16400 is likely to act as resistance on the upside.Bank Nifty likely to find support  at  around 34200 while 35500 is likely to act as resistance.
 
TRADING call (1-2 days): BUY Sail July future at 72.75-73.25. Stop loss: 71.50. Target: 74.5
 
 Derivative call- time period:(1 month); BUY Aarti Ind July future at 705-710. Stop loss: 693.35. Target: 722