Markets may open in the Red due to profit booking

28 Jun 2022 , 07:58 AM

Indian markets are likely to open in the Red today. Profit booking may start from early hours as many investors may try to take advantage of the rise seen yesterday. Oil prices have risen by 1% since yesterday. This rise has happened because of UAE saying that it is producing near its full capacity and it will not be possible for it to increase production any further. For India, any rise in oil price adds to negativity. SGX Nifty has also lost around 0.67% since morning.

US markets saw a quiet start to the week with profit booking in all indices. Dow Jones closed lower by 60 points. Nasdaq lost 83 points.Russell 2000 index closed in the green indicating that the broader markets have started  to outperform. Bond yields closed near 3.17% as crude prices saw rise as growth momentum returns.
 
Asian markets have opened in the green led by the Japanese ‘Nikkei’ which was up by over 100 points in early trade.  South Korea market and the ASX are also on the rise.The emerging markets basket yesterday saw a superb rally led by the Brazilian ‘Bovespa’ which gained over 2.3%. Expect Chinese stocks to react positively as reopening now sees huge potential of economic activity.
 
Nifty saw a smart rally in the morning with the index crossing 15900. However, last hour profit booking saw gains get diluted with the index closing higher by 132 points. Bank Nifty also traded above 3400 briefly before closing up 183 points at 33800.Mid caps were the star for the day. Nifty small cap 100 index closed with gains of over 2.04%. For today expect another volatile day as we see expiry of contracts with rollovers at the lowest in months as low participation take place.
 
 Technical View: Nifty likely to find support at around 15600. 16000 is likely to act as resistance on the upside. Bank Nifty likely to find support at around 33500 while 34500 is likely to act as resistance.
 
TRADING call (1-2 days): BUY Nalco July future at 70.25-70.5. Stop loss: 68.90. Target: 72.
 
 Derivative call- time period:(1 month): BUY GMR July future at 34.75-35. Stop loss: 34.15. Target: 35.75.