Markets may see swing movements today

27 Sep 2022 , 08:39 AM

Indian equity markets may see some swing movements today. After the decline of yesterday, there may be some value buying today. The behavior of foreign investors will largely determine which way the markets will go today. Some investors may be driven to sell further before RBI announces another interest rate hike.

US markets saw another weak start to the week. Dow Jones hit new 52-week lows, falling by over 300 points. Nasdaq traded in the green for most of the session but last hour saw it close lower by 65 points. Bond yields hit the highs last seen in 2007. Crude hit year’s lows.US$ hit all time high against most currencies which. This caused weakness in stocks of large cap exporters in US.
 
Asian markets have opened modestly today as US markets failed to stabilize. US dollar has touched new highs. It has appreciated by over 5% in a week. Japanese ‘Nikkei’ is trading higher by 200 points after falling by over 750 points yesterday. Yen hit 30-year lows against the US dollar. Chinese stocks could see buying support as reopening of travel & tourism will boost business.
 
Nifty saw another big sell-off as foreign investors turned big sellers as US dollar hit a new high against the Rupee. This prompted ETF selling as collateral against the currency weakness. There was across the board selling in blue chips. Only IT stocks saw buying interest due to a weaker rupee. Metals, Auto & Realty took the worst hit. Mid- caps also got pounded in the sell-off. Nifty midcap 100 index closed lower by over 3%.
 
Technical View: Nifty likely to find support at around 16850. 17500 is likely to act as resistance on the upside. Bank Nifty likely to find support at around 38400. 39400 is likely to act as resistance on the upside.

TRADING call (1-2 days) BUY Concor (Container Corporation of India) October future @ 700-705.  Stop loss : 687.90. Target : 717

Derivative call- time period:(1 month) : BUY Ashok Leyland October future @ 154-155. Stop loss: 151.40. Target: 158