Markets may start the week in Red

22 Aug 2022 , 08:40 AM

Indian markets may start the day in red today. Most Asian markets have opened in the red today. Profit booking may take place in some stocks today. Dollar has strengthened further. Oil prices have declined further. The concern that US Federal Reserve may go for a substantial rate hike in September have increased. 

US markets saw weakness on triple witching day as the largest ever option expiry saw pressure on indices. Dow Jones closed lower by 280 points. Nasdaq fell over 250 points. Bond yields hardened to 1 month high at 2.98%. Crude traded near $89 per barrel. US dollar index spiked to 2 month high at 108. This appreciation in dollar against major currencies may result in weakness in global equities.

Asian markets have opened in the red led by the Japanese “Nikkei’. Last week was the best one for Nikkei in the past 3 months. Nikkei is down by over 300 points in early trade as the Japanese Yen hit fresh lows against the US$. However, the New Zealand & ASX markets are trading flat even as other markets see profit booking. Chinese stocks remain the weak link as money exits the Realty space and enters other Asian markets.  

Nifty saw a correction after 8 days of straight gains as local mutual funds sold stocks aggressively. The index turned from just below 18000 to see a sharp fall of 200 points, giving the much-needed correction. Bank Nifty led the decline with the index falling over 670 points. Mid-caps were the worst hit with the Nifty midcap 100 index falling over 1.45%.

Technical View: Nifty likely to find support at around 17600. 18050 likely to act as resistance on the upside. Bank Nifty likely to find support at around 39200. 39900 is likely to act as resistance .

TRADING call (1-2 days) : BUY Hero Moto August future @ 2830-2840. Stop loss: 2778. Target: 2895 

Derivative call- time period:(1 month):  BUY Apollo Hospital August future @ 4130-4150. Stop loss: 4058. Target: 4225