SGX Nifty marginally above its closing price yesterday

18 May 2022 , 08:23 AM

SGX Nifty is marginally above its closing price  yesterday. At 8:27 a.m. Indian time it was at 9.75.

US markets saw superb rally as Dow Jones gained over 430 points while Nasdaq climbed 330 points as short covering/value buying saw stocks rising globally.  Bond yields climbed to 2.98%, while crude prices rose in tandem with equities. China reopening saw metals lead the global rally.
 
 Asian indices opened mixed after seeing a superb past 2 days with the Japanese ‘Nikkei’ trading higher by 170 points in early trade. Taiwan & South Korean markets also traded in the green even as Chinese stocks see profit booking. The Hong Kong index was the big gainer yesterday, rising over 650 points and could see profit booking in early trade today.
 
Nifty saw a superb day of gains with the index clocking its best day in over 3 months. The index closed higher by 417 points with the Sensex gaining 1350 points. Bank Nifty rose over 700 points, but the day belonged to metals & IT, with Hindalco, Tata Steel, and Vedanta gaining between 7%-13%. Metal index was up by 6.86%, while IT index gained nearly 3%. Mid caps also joined the rally with the Nifty small cap 100 index up by 3.36%.
 
 
Technical View: Nifty will find support at around 16000 while 16500 is likely to act as resistance level . Bank Nifty will find support at around 33800 while 34900 is likely to act as resistance on the upside.
 
 
TRADING call (1-2 days): BUY Bajaj Finance May future at 5800-5840; stop loss at 5703.65 and target 5950.
 
 
Derivative call- time period:(1 month):  BUY Cummins May future at 1005-1015;  stop loss at 989 and  target 1032.