Indian markets look set to start the day strong today. US markets closed strongly in the green yesterday. Asian markets opened in the green today. Foreign portfolio investors turned net buyers in Indian equity markets yesterday. Oil prices rose again yesterday. This is a negative factor for Indian stock markets.
US markets rebounded in style yesterday. Dow Jones gained over 765 points. The Nasdaq climbed more than 240 points. Bond yields fell to 3.68%. Oil has seen a smart recovery of more than 3%. Brazil’s ‘Bovespa’ index gained more than 6% to record its best rally in more than 6 months as many emerging market stocks rebounded strongly.
Asian markets opened in the green today. The Japanese ‘Nikkei’ is trading higher by more than 650 points in early trade as US indices turned positive. Most of the other Asian indices are bouncing back smartly. Chinese stocks are also likely to join the rally as relief measures for the struggling real estate sector receive a major boost from the government.
Nifty had another volatile day yesterday, with most investors skeptical of the huge one-day rally seen on Friday. Even though foreign investors turned to buyers after a long sell-off, local mutual funds registered profits. Nifty fell more than 200 points with autos and banks leading the sell-off as profit bookings were seen across the board. Adani Ent, Eicher Motor, Tata Consumer and Maruti led the losers. ONGC, Dr Reddy’s, Cipla and BPCL led the winners.
Technical view: Nifty will likely find support around 16800 while 17300 will likely act as resistance. Bank Nifty should find support around 37900. 39000 should act as resistance on the upside.
TRADING call (1-2 days): BUY Adani Port October future at 785-790. Stop loss: 771.35. Target: 805.
Derivative Call Period: (1 month): BUY Federal Bank October futures contract at 116.5-118.5. Stop-loss: 115.1. Goal: 120.