Indian equity markets could start the day green today. Other Asian markets started the day green. SGX Nifty is up 0.43% since morning. Later in the day, markets may experience some selling pressure from FPIs. FPIs were net sellers again yesterday.
US markets had another weak day yesterday. Selling collateral against expected higher interest rates led money to pull out of stocks and buy bonds. Oil prices rose by over 3% as a supply/demand mismatch and the coming winter led to expectations of rising demand. Bond yields settled around 3.05%. The US dollar closed lower near 108.5
Asian markets opened in the green after yesterday’s sell-off. The Japanese “Nikkei” is trading up over 1% or nearly 300 points. Most other Asian indices are also trading 0.50% to 1.5% higher as oversold indices attract buying interest. Chinese equities will also outperform as real estate and banks see renewed buying interest.
Nifty experienced another day of volatile trading yesterday. The opening decline was bought and the index recovered from a 392-point decline to a 145-point decline before closing 245 points lower. Bank Nifty also saw large swings, falling 1043 points before closing points lower. IDFC First, IndusInd & Federal Bank led the comeback. Consumer stocks were the only winners, led by Nestle & Britannia, with Maruti leading in the autos sector. Losers were across the board, with IT being hardest hit, led by Tech M, Infosys & HCL Tech.
Technical view: Nifty is likely to find support around 17300, while 17750 is likely to act as resistance on the upside. Bank Nifty should find support around 38,000 while 39,000 is likely to act as resistance.
TRADING Call (1-2 days): Buy HDFC September Future @ 2370-2380. Stop Loss: 2327.5. Goal: 2425
Derivatives call period: (1 month): BUY Bosch Future September @ 17100-17200. Stop Loss: 16810. Target: 17500
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