Indian equity markets could start in the green today. Most other markets have started the day in the open. SGX Nifty is up 1.99% as of 10am Indian time. The GDP data on the performance of the Indian economy in the March quarter of 2022, released yesterday, did not trigger an unexpected, unpleasant surprise.
US markets reopened with profit bookings as crude oil prices hit 3-month highs and the EU bans the use of Russian oil. This led to a sharp increase in bond yields as well as profit bookings in equities. The Dow Jones fell over 450 points for the day before recouping almost all of its losses until falling 220 points in the final hour of trading. Nasdaq fell 40 points as technology stocks continued to see some buying interest.
Asian indices are starting to trade in the green today after US futures surged after a stellar last week as routine US profit booking. The Japanese “Nikkei” is trading over 150 points higher. Most other Asian markets including ASX and South Korea are also trading at profit. Markets are looking forward to better gains from the region as China prepares to reopen.
Nifty had another good day yesterday until seeing a huge bout of profit booking in the last 30 minutes as the intraday rally sold off on weak US futures. The index had posted big gains for the last 3 days and was ripe for profit booking. Nifty swung over 170 points before closing 78 points lower. Bank Nifty fell over 339 points as profit bookings at large banks dragged the index lower. The rise in crude oil prices and weaker rupee saw banks lead the losers. M&M, NTPC, ONGC and Coal India led the winners.
Technical view: Nifty is likely to find support around 16300, while 16850 is likely to act as resistance on the upside. Bank Nifty should find support around 35,200 while 36,200 is likely to act as a resistance level.
TRADING Call (1-2 days): BUY Adani Enterprises June Future at 2170-2175. Stop Loss: 2129.55. Target: 2220
Derivative Call (1 month period): BUY Godrej Consumer June Future at 765-770, Stop Loss: 752.15. Goal: 783.
Comments are closed.