SGX Nifty opens on the rise

19 May 2022 , 08:44 AM

SGX Nifty has started the day on the rise. At around  8:46 a.m. Indian time, it was up by 0. 31%.

US markets saw the biggest sell off in past one month as Dow Jones fell over 1100 points while Nasdaq fell nearly 4.75% .Target fell over 25% as it indicated supply chain disruption coupled with higher logistic costs  hurting its margins. This downfall implies that the market is factoring in recession like conditions as Federal Reserve seems poised to raise rates faster than anticipated.
 
 Asian indices opened weak after the big US sell off as the Japanese ‘Nikkei’ traded lower by over 600 points in early trade. The weakness in US stocks is playing out globally with signs of higher inflation & rate tightening resulting in recession like situation in the US by 2023. Chinese stocks will also see reaction, after seeing strong pullback this week as technology stocks lead the gainers.
 
Nifty saw a day of consolidation after the big rally on Tuesday as Nifty succumbed to profit booking in 2nd half to close lower by 20 points. This as it swung nearly 190 points from the day high to the day lows. Bank Nifty was the laggard as higher than expected inflation saw banks lead the losers with the Bank Nifty index closing lower by 138 points. Consumer & cement stocks lead the gainers while PSU stocks like Powergrid, SBI & BPCL led the losers.

• Technical View: Nifty is likely to support at around 15800 while 16400 is likely to act as the resistance level. Bank Nifty likely to find support around 33800 while 34750 is likely to act as the resistance level on the upside.

• TRADING call (1-2 days):  SELL PEL May future at 1975-1985;  stop loss: 2019.60 and  target: 1940

• Derivative call- time period:(1 month):  SELL Vedl May future at 315-319;  stop loss : 323.30 and target: 310