Indian markets are likely to remain red territory today. Foreign portfolio investors are likely to remain net sellers today. This is due to some concerns stemming from the US Federal Reserve’s decision to raise interest rates later this evening. Stocks of companies like Maruti Suzuki will see movement. The June quarter results will be available today.
US markets pulled back ahead of big gains yesterday and Federal Reserve meets today. Dow Jones lost 220 points. Nasdaq closed lower for the third straight day, shedding over 216 points. Bond yields closed near 2.75%, their lowest level in over 2 months. Oil prices showed a slight upward trend.
The Asian markets have opened subdued. As the Federal Reserve meets tonight, all investors will be awaiting and discussing the direction of their actions to chart the course ahead. Japan’s Nikkei is trading 50 points down, while most other Asian indices are trading flat to slightly negative, although US futures were higher on strong results from Amazon, Texas Instruments and Microsoft.
The Nifty posted a second consecutive day of losses as gains were posted across the board, led mainly by IT and banking stocks. This came ahead of Thursday’s monthly expiration of derivative contracts and the Federal Reserve are meeting tonight. Nifty lost over 145 points. Bank Nifty lost 317 points. Mid caps also saw a downtrend. The Nifty Small Cap Index lost over 1.45%.
Technical View: Nifty is likely to find support around 16200, while 16850 is likely to act as resistance on the upside. Bank Nifty should find support around 36000 while 37000 is likely to act as resistance.
TRADING Call (1-2 days): BUY Mphasis August Futures at 2180-2190. Stop Loss: 2139. Target: 2230
Derivative Call period (1 month): BUY Bharat Electronics August Future at 266.5-267.5. Stop Loss: 261.55. Goal: 272.5
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