Markets may start the day in green

30 Aug 2022 , 08:38 AM

Indian equity markets may start the day in green today. Other Asian markets have started the day in green. SGX Nifty is up 0.43% since morning. Later in the day the markets may see some selling pressure from FPIs. FPIs were net sellers again yesterday. 

US markets saw another weak day yesterday. Collateral selling against expected higher rates saw money exit equity & buy bonds. Oil prices rose over 3% as demand/supply mismatch & coming winter led to expectations of increase in demand. Bond yields settled near 3.05%. US$ closed lower near 108.5 
 
 Asian markets have opened in the green after yesterday’s sharp sell off. Japanese ‘Nikkei’  is trading higher by over 1% or nearly 300 points. Most other Asian indices are also trading higher by 0.50% to 1.5% as oversold indices see buying interest. Chinese stocks will also see outperformance as realty & banks see renewed buying interest. 

Nifty saw another day of volatile trade yesterday. The opening decline got bought into and the index recovered from being down by 392 points to being down by 145 points before closing lower by 245 points. Bank Nifty also saw large swings of being down by 1043 points before closing lower by points. IDFC First, IndusInd & Federal Bank led the comeback. Consumer stocks were the only gainers, led by Nestle & Britannia with Maruti leading in the auto sector. Losers were across the board with IT being the worst hit, led by Tech M, Infosys & HCL Tech.

Technical View: Nifty likely to find  support at around 17300 while 17750 is likely to act as resistance on the upside. Bank Nifty likely to find support at around 38000 while 39000 is likely to act as resistance.

TRADING call (1-2 days) : Buy HDFC September future @ 2370-2380. Stop loss : 2327.5. Target : 2425

Derivative call- time period:(1 month) : BUY Bosch September future @ 17100-17200. Stop loss : 16810. Target : 17500