Markets may start the day in Green but may give up gains later in the day

28 Jul 2022 , 08:31 AM

Indian markets may start the day in Green on the back of positive cues from other equity markets. But narkets may see gains getting wiped off later in the day due to likely selling by Foreign Investors. Federal Reserve increased interest rate by 75 basis points yesterday. Federal Reserve said in its statement that fighting inflation is top priority even if it means sustained period of economic slowdown. A recession in US will cause severe economic pains in Indian economy too. 

US markets saw big gains as the Federal Reserve hiked interest rate by 75 basis points. Indications were also given by the Federal Reserve that in September it may go for a hike between 25 to 50 basis points. Data showed slowdown in consumption in US economy.Dow Jones gained over 435 points. Nasdaq gained 470 points or 4.06%. US bond yields traded near 2.77%. US dollar saw sharp decline which sent emerging market stocks into top gear. 

Asian markets have opened in the green, led by the ASX and NewZealand markets. The Japanese ‘Nikkei’ was trading higher by 100 points. Both South Korea and Taiwan markets should see good gains as semiconductor supply now eases. This should see listed stocks do well there.Chinese stocks will also be in action as metals and auto see strong demand. 

Nifty saw another superb day, 1 day before expiry of derivative contracts for July. July has been the best month in over 6 months. Nifty closed with gains of over 157 points. Bank Nifty gained 375 points. Short covering and value buying saw mid caps also perform well, with the Nifty midcap 100 index gaining over 1.11%.

Technical View: Nifty likely to find support at around 16200 while 16850 is likely to act as resistance on the upside. Bank Nifty likely to find support at around 36500 while 37300 is likely to act as resistance.

TRADING call (1-2 days): BUY Grasim August future at 1535-1545. Stop loss: 1509. Target: 1570

Derivative call- time period:(1 month): BUY Persistent August future at 3400-3410. Stop loss: 3336.9. Target: 3475