Markets may see profit booking today

7 Jul 2022 , 08:21 AM

Indian equity markets may see profit booking today by investors and traders, after the gains of yesterday. Stocks of Bajaj Finance, Bajaj Finserv, Britanning etc may see selling today as investors may book profits in these stocks. Oil prices declined further in early hours today. This happened because of fears of a global recession starting to materialize. Even the IMF Chief is now accepting that the probability of a global recession cannot be ruled out.

US markets ended higher as Federal Reserve minutes indicated rate hike to control inflation later this month. Dow Jones closed higher by 69 points after being up over 250 in intra day trade. Nasdaq closed higher by over 40 points as Meta, Amazon and Apple lead the winners.Bond yields rose to 2.90% while US dollar hit 102 against the Euro, a 20 year high.
 
 Asian markets have opened muted today. Japanese ‘Nikkei’ is trading higher by 70 points. South Korean ‘Kospi’ is trading higher by 1% after the sell-offs seen in the last few days. Chinese stocks could see gains as ETF flows and higher economic activity bode well in short to medium term for the economy and companies.
 
Nifty saw a volatile day as it hit 16000 and crossed it after seeing intra day swings of over 200 points as short covering coupled with value buying saw the index regain 16000 level after 2 months.Bank Nifty led the gainers with Kotak and SBI leading the gainers while the index closed higher by 500 points. Mid caps also saw action with the Midcap 50 index up 2.18%. Breadth was also positive for the broader markets.
 
Technical View: Nifty likely to find support at around 15850 while 16200 is likely to act as resistance on the upside.Bank Nifty likely to find support at around 33700 while 34900 is likely to act as resistance.
 
TRADING call (1-2 days) BUY Jindal Steel July future @ 332-334. Stop loss: 326.25.  Target: 340
 
 Derivative call- Time period:(1 month) BUY Persistent System July future @3325-3365. Stop loss: 3273. Target: 3410