Markets may start the day in Green

15 Jul 2022 , 08:12 AM

Indian equity markets may start the day in Green today. SGX Nifty, the derivatives contract listed at Singapore Stock Exchange on India’s Nifty 50, is up by 0.42% since morning. Data on India’s current account in June came yesterday. Trade deficit widened to $26.8 billion in the month. US Federal Reserve is now expected by many to go for a 100 basis point hike in interest rates on 27th July. Oil prices are now at around $95 per barrel. The cocktail of all these factors give much uncertainty to the equity markets. But it still is a good time to buy stocks at cheaper prices, for those who want to invest for the long term.

US markets saw another inside day with Dow Jones closing lower by 140 points after being down by over 650 points in early trade.Nasdaq closed in the green, recovering over 260 points from the lows for the session. Bond yields closed near 2.95% while oil prices hit US$90 in early trade and recovered to close near US$95. 
 
 Asian markets have opened mixed with the Japanese ‘Nikkei’ seeing a quiet opening, down by 28 points, as investors lighten up before the weekend. Most Asian indices are playing out to higher interest rate hikes by the Federal Reserve on the 27th July meeting, with 40% probability of 100 basis points rate hike .The other headwind has been the rise in the US$ as the Euro weakness sees currencies across the globe weaken.
 
Nifty saw another day of volatile trade with the index swinging over 220 points before closing lower by 28 points. Bank Nifty also saw intra day swing of over 600 points before closing lower by 176 points. IT stocks hit fresh new lows led by TCS and mid cap IT stocks, with the index closing lower by over 1.6%. Pharma stocks were the main gainers led by Sun Pharma and Dr Reddy, with Kotak bank and ONGC being the other leaders.Mid caps also saw profit booking with the midcap index closing mildly lower.
 
Technical View: Nifty likely to find support at around 15800 while 16300 is likely to act as resistance on the upside.Bank Nifty likely to support at around 34500 while 35500 is likely to act as resistance.
 
TRADING call (1-2 days): BUY Hindustan Petroleum July future at 236-239. Stop loss: 232 .Target: 242
 
Derivative call- time period:(1 month): BUY BPCL July future at 306-309. Stop loss: 301.35  Target: 314