Markets may start the day on a flat note

6 Sep 2022 , 08:44 AM

Indian equity markets may begin the day on a flat note. The momentum of yesterday may be weakened somewhat today by OPEC+ announcement that it will cut oil supply by 100,000 barrels per day. This will put upward pressure on oil prices. This in turn will further put upward pressure on inflation rate in India.

US markets were closed for labour day holiday yesterday.  Futures point to gains as markets await Friday inflation numbers before the Federal Reserve meet on 21st September. Oil prices rebounded as OPEC decided to cut production from 1st October. Russian gas embargo saw European stocks correct sharply.
 
 Asian markets have opened in the green after yesterday’s correction. Japanese ‘Nikkei’ and Taiwanese index are leading the gainers. Chinese stocks are also reacting positively as US talks on allowing Chinese listing of internet stocks made further headway. 

Nifty saw another positive day yesterday. The index gained over 120 points. Banks & Reliance led the gainers. IT, FMCG stocks saw profit booking. The broader markets again outperformed as retail investor interest shifted to mid caps. Nifty small cap 100 index closed with gains of over 1.20%. Breadth of the market also turned positive with gainers outnumbering losers.
 

Technical View: Nifty likely to find support at around 17500. 17850 is likely to act as resistance on the upside. Bank Nifty likely to find support at around 39000 while 40000 is likely to act as resistance on the upside.

TRADING call (1-2 days) : BUY Jindal Steel September future @ 424-426. Stop loss : 416.5.  Target: 434

Derivative call- time period:(1 month) : BUY Nalco September future @ 78-78.5.  Stop loss: 76.5. Target : 80.5