Markets may see some positivity today

26 Dec 2022 , 02:56 AM

Indian equity markets are likely to see some positivity today. Japanese Nikkei and Shanghai Index are in Green today. Most other Asian markets are closed today, on account of Boxing Day Holiday.

US stocks saw gains on Friday. Data on inflation showed marginal downtick. This improved sentiments. Dow Jones closed with gains of 176 points. Nasdaq closed up by 21 points. Bond yields hardened to 3.70%. Oil also rebounded as colder weather saw supply disruption.

Asian markets have opened in the green. Japanese ‘Nikkei’ is the only major Asian market open for trading today, as most other exchanges are closed, on the day after Christmas. China’s fresh round of Covid is seeing huge uncertainty as data & rumors inflate the number of infected.  This in turn is hurting sentiment in other markets.

 
Nifty saw another day of big sell off on Friday. Rumors on China Covid acceleration and alertness by Government on control measures saw retail leveraged traders close positions. This saw the index tank over 320 points. Bank Nifty fell over 740 points. Midcaps saw near term capitulation. Adani Ports, Adani Enterprises, Hindalco led the losers.  Cipla, Divi’s Lab and Titan were the only Nifty gainers.

Technical View: Nifty is likely to find support at around 17700. 18400 is likely to act as resistance. Bank Nifty is likely to find support at around 41500. 42650 is likely to act as resistance on the upside.

Trading call:(1-14 days) BUY REC LTD December future @ 108-109. Stop loss: 106.25. Target: 111.

Derivative call-time period: (1 months) BUY Ambuja Cement December future at 488-492. Stop loss: 480.10. Target: 501.