Markets may see a volatile day today

5 Dec 2022 , 08:46 AM

Indian equity markets may see a volatile day today. There is likely to be profit booking by some sections of investors. Others will do buying in the hope that RBI will slow down the quantum of its interest rate hike tomorrow. There is strong expectation that RBI will go for a lower interest rate hike tomorrow. 

US markets saw sharp intra-day swings on Friday. Dow Jones recovered from down by 400 points to close, up by 34 points. Nasdaq recovered, from down by 165 points to close lower by 18 points. This, as jobs data surprised with better-than-expected numbers. This saw bond yields initially rise, only to give up gains and close near 3.53%.

Asian markets have opened mixed today. Japanese ‘Nikkei’ is trading marginally higher in early trade. Other markets are seeing mixed reaction to US jobs numbers. All eyes are on the Federal Reserve meeting next week. China’s reopening of more cities is seeing the Hang Seng maintain its gaining streak, with another sharp rise along with the Taiwan index.

 Nifty saw a day of profit booking, after the stellar rise over the past week. Reliance and auto stocks led the losers. Mid-caps saw huge traction on the upside. Mid-cap index outperformed the Nifty 50. Nifty midcap 100 index was up 0.88% while Nifty 50 was down 0.63%. Metals, IT and select pharma were winners. Auto and banking stocks saw profit booking.

Technical View: Nifty is likely to find support at around 18550. 18950 is likely to act as resistance. Bank Nifty is likely to find support at around 43000. 44000 is likely to act as resistance on the upside.

TRADING call (1-2 days) BUY Sun Pharma December future @ 1040-1045. Stop loss: 1035. Target: 1050. 

Derivative call- time period:(1 month) : BUY Eicher Motor December future @ 3330-3340. Stop loss 3268.25. Target: 3410.