Profit booking likely to dominate today in Indian markets

26 Jul 2022 , 08:22 AM

Indian equity markets may see profit-booking today. Investors and traders may sell many of their positions before the Federal Reserve decision tomorrow on interest rate hike. Oil prices have declined further. Bajaj Finsery, Larsen & Toubro, Bajaj Auto, United Spirits, UTI Asset Management are some of the companies that will report their June quarter results today. Their stock prices are likely to see movement today.

US markets saw pullback with Dow Jones closing higher by 90 points. Nasdaq closed lower by 50 points as technology stocks saw another day of profit booking. Bond yields closed near 2 month lows at 2.77%. Oil prices remained lower, near US$96 .Emerging markets reacted positively to a weaker US dollar. Brazilian ‘Bovespa’ saw gains of over 2%. 

Asian markets have opened mixed with the Japanese ‘Nikkei’ seeing another weak opening, trading lower by 140 points.Most other Asian markets trade flat to mildly positive as investors await Federal Reserve action on Wednesday with 75 basis points rate hike expectation.Chinese stocks could see action as reopening is likely to send metal stocks globally on the uptick, along with auto stocks.

Nifty saw a day of losses after 5 days of gains as Reliance led the losers after results saw a decline of over 3.5% in the stock price. M&M, Eicher and Maruti also saw profit booking .Tata Steel, Indusind and Hindalco led the gainers. Nifty ended lower by 88 points. Bank Nifty closed flat.Mid caps also followed suit with profit booking but Nifty Midcap 50 index closed marginally in the green.

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 36000 while 37000 is likely to act as resistance.

TRADING call (1-2 days): BUY Bajaj Finserv July future at 12600-12700. Stop loss: 12375. Target: 12950

Derivative call- time period:(1 month): BUY Firstsource Solutions Ltd’s (FSL)  August future at 110-111. Stop loss: 108.25. Target: 113