Markets may see a day in red today

13 Oct 2022 , 08:37 AM

Indian markets are more likely to see a day in red today. Consumer Price Inflation (CPI) in September rose to 7.4% from 7% in August. Index of Industrial Production (IIP) declined year-on-year by 0.8% in August. Mining output year-on-year came down by 3.9% in August. Manufactured goods output came down year-on-year by 0.7%. Electricity output increased year-on-year by 1.4%.

Stocks of Infosys, Aditya Birla Money, Den Network etc are likely to see price movement  today. These companies will declare their September quarter results today.

US markets saw fall for another day, yesterday. Dow Jones saw intra-day gains of over 220 points, before ending lower by 22 points. Nasdaq closed flat after seeing swings of over 100 points. Bond yields remained near 3.90%. WTI crude tumbled down to US$87.

 Asian markets have opened flat today. Japanese “Yen’ hit a 24 year low against the US dollar. Higher yields in US bonds yields is causing dollar buying globally, as the way to safeguard against depreciation in other currencies. UK central bank’s intervention in bond markets gives the signal on the ongoing crisis in Europe. Most other Asian markets will await the CPI inflation number of United States, due today. This will give an idea of the outlook on rates in the coming months.

Nifty saw another volatile day with the index seeing a sharp rebound after yesterday’s sharp sell- off. The index saw sharp short covering, coupled with local buying, which saw the index gain over 140 points. Bank Nifty led the gainers, with the index closing with gains of over 400 points. IDFC First, Axis and Federal Bank led the gainers. PowerGrid, NTPC and Coal India were also among gainers. Asian Paints, Adani Ent and Dr Reddy’s were the main losers.

Technical View: Nifty likely to find support at around 17000. 17350 is likely to act as resistance on the upside. Bank Nifty likely to find support at around 38600. 39500 is likely to act as resistance on the upside. 

TRADING call (1-2 days) : BUY Vedanta Ltd’s October future at 287-291. Stop loss: 283.10. Target: 295.

Derivative call- time period:(1 month): BUY Tata Steel October future at 100.5-101.5. Stop loss: 98.85. Target: 103.5.