Markets may go all green today

14 Oct 2022 , 08:47 AM

Indian equity markets are likely to see a day in green today. US equity markets closed strongly in the green yesterday. Following the cues from US markets, Asian markets too have opened strongly in the green today. Consumer Price Inflation increased month-on-month by 0.4%, in September, in US. On a year-on-year basis, inflation stood at 8.2% in September.

US markets saw biggest intraday reversal in over 1 year, yesterday. Dow Jones swung over 1600 points, before closing higher by 830 points. Nasdaq saw 600 points movement, before closing higher by 235 points.US dollar saw weakness. This prompted shift to equities. Bond yield closed near 3.94%.

 Asian markets have opened in green today. This opening in green has been propelled by the sharp rally overnight in US equity markets. The US dollar weakness seen yesterday is also acting as a positive cue. Japanese ‘Nikkei’ is trading higher by over 720 points in early trade.  ASX & New Zealand indices are also up smartly. Most indices are trading higher. Chinese stocks could also see ETF flows as reopening could see consumption led demand take off.

Nifty saw another volatile day with swings on both sides as the index buckled under pressure, to trade lower by 167, before closing lower by 109 points. Bank Nifty traded lower by 700 points before closing lower by 494 points. This happened as profit booking was witnessed ahead of the US CPI data. Selling by FPIs also took place. This saw mid-caps also participate in the weakness.

Technical View: Nifty likely to find support at around 17000. 17450 is likely to act as resistance on the upside. Bank Nifty likely to find support at around 38600.  39700 is likely to act as resistance on the upside. 

TRADING call (1-2 days) BUY INFY October future @ 1415-1430. Stop loss :1389. Target: 1450

Derivative call- time period:(1 month) BUY ICICI Bank October future @ 855-860. Stop loss: 839.65. Target: 875.