Markets may see profit booking today

21 Jul 2022 , 08:23 AM

Indian markets are likely to see some profit booking in early trading hours today. Some investors will sell and book profits at higher prices after the gains of yesterday. Oil prices came down marginally yesterday. Inflation and rupee depreciation are major dampeners for Indian equity markets. They may wipe out the gains of the past few days in the next few days. Stock of Wipro may see some movement. The company reported a 21% year-on-year decline in its net profit yesterday. 

US markets saw another day of gains. Dow Jones closed higher by 50 points. Nasdaq jumped over 180 points. It is now up by more than 12% over the lows of June.Bond yields remained near 3% . Crude dipped further to trade near US$ 99.

 Asian markets have opened mixed after the big rally yesterday with the Japanese ‘Nikkei’ trading lower by 50 points. Profit booking is being seen after the gains of 750 points yesterday. Most other Asian indices are trading flat as markets await further data on cooling inflation with the Federal reserve meet slated for next week.

Nifty saw another day of big gains. The index climbed to 16500 level with ease. It closed higher by another 180 points. Bank Nifty saw profit booking after hitting fresh 2 month highs at 36182. Mid caps saw their best 2 weeks in over 3 months with stocks gaining 10% -30%.Nifty small cap 100 index has gained over 15% from the June lows to date.

Technical View: Nifty likely to find support at around 16100. 16650 is likely to act as resistance on the upside. Bank Nifty is likely to find support around 35500 while 36400 is likely to act as resistance level.

TRADING call (1-2 days): BUY Godrej Consumer Products July future at 865-870. Stop loss 850.25. Target: 885

Derivative call- time period (1 month): BUY Astral July future at 1765-1775. Stop loss: 1735. Target: 1807