Markets may see another day in red today

28 Sep 2022 , 08:43 AM

Indian equity markets may see a day of significant selling today. For the time being it looks like gloom and doom all around. Rupee’s depreciation against the dollar may further exacerbate foreign selling.  Anxiety has also been increased by the imminent interest rate hike that RBI will announce this week. The depreciation in rupee may give RBI a reason to go for 50 basis point hike at least. On the positive side, today may be a good day for retail investors with long term perspective to buy some stocks at lower valuations.

US markets saw another volatile day yesterday with all rallies again getting sold into. Dow Jones saw swings of over 700 points before closing lower by 125 points. Nasdaq managed to close in the green as technology stocks like Apple and Meta led the gainers. Bond yields hit fresh 14-year highs at 3.8%. US dollar index hit all-time high at 114.3.
 
 Asian markets have opened in the red today.  Japanese ‘Nikkei’ is down by over 250 points. Yen’s weakness is causing selling in local importer companies .Most other Asian indices are also trading lower despite good economic news from the region and oversold levels on most indices. Chinese stocks are also seeing lackluster trade despite signs of rebound in manufacturing activity.

Nifty saw another volatile day with swings of over 230 points before closing flat. Bank Nifty was more volatile with the index swinging over 860 points, before closing lower by 250 points. Cipla, Tata Consumer and Shree cement led the gainers. Adani Port, Hero Motors and Titan led the losers. Mid-caps saw buying with the Nifty midcap 50 index closing higher by 0.20%.
 
Technical View: Nifty likely to find support at around 16900. 17200 is likely to act as resistance on the upside. Bank Nifty likely to find support at around 38000. 39000 is likely to act as resistance on the upside.

TRADING call (1-2 days) : Sell L&T Finance September future at 73-74.  Stop loss : 75. Target : 72.

Derivative call- time period:(1 month) : BUY HCL Tech October future @ 910-915. Stop loss: 893.75. Target: 932.