Markets may start the day in red today

3 Oct 2022 , 08:46 AM

Indian equity markets are likely to start the day in red. Short-term profit booking may take place today after the gains of Friday.  Global cues are also negative today. US markets ended sharply in the red on Friday. Asian markets have also opened weakly today. Global crued oil prices have jumped up by 3%. This rise has taken place on the expectation that OPEC+ may cut oil supplies by as much as 1 million barrels per day.

US markets got in the grip of fear on Friday. Dow Jones fell over 500 points on Friday with indices recording the worst week, month & quarter since March 2020. Nasdaq continued its losing streak, falling over 160 points to its lowest since June. Bond yields hit 3.72% even as crude prices fell.  US$ index closed unchanged near 112. 

Asian markets have opened mixed with the Japanese ‘Nikkei’ trading mildly in the green. Most other indices are trading mildly lower as a rub off effect of the US sell off on Friday. Taiwan and South Korean markets continued to see weakness even as auto sales in Asia see best rebound in over 3 years. Chinese stocks will be in action as economic activity is set to rebound.

Nifty saw another quiet start to the new series, on Friday, till the Reserve Bank announcement of 50 basis points rate hike. The Governor however was very positive on Indian growth & inflation being under control, which spurred the bulls to take charge. The Nifty saw a superb rally from 7 days of oversold territory to record its best day in over a month as it soared nearly 300 points, with Bank Nifty rising almost 1000 points. 

Technical View: Nifty likely to find support at around 16700 while 17200 is likely to act as resistance. Bank Nifty likely to find support at around 37400. 39000 is likely to act as resistance on the upside. 

TRADING call (1-2 days): BUY Ashok Leyland October future @ 151-154. Stop loss: 148.5. Target: 157

Derivative call- time period:(1 month) Sell Hindalco October future at 388-392. Stop loss : 397.8.  Target : 382