Indian stock markets could start the day in green

Indian markets are expected to open in the green today. Markets ended in the red yesterday due to profit taking, after the rise the day before yesterday. Some valuable purchases can take place today. This can propel the markets into green territory during business hours. Crude oil prices fell about 5% yesterday. For India, any drop in the price of oil is always good news, even if it is due to heightened fears of a global recession. India’s current account deficit in the March quarter of 2022 was lower than in the December quarter of 2021.

US markets had a huge upside day yesterday as the Dow Jones swung over 650 points to close 45 points after losing over 350 points on the day’s open. The Nasdaq saw swings of more than 280 points before closing down 18 points. Bond yields closed lower at 3.13% as crude prices fell sharply.

Asian indices opened in the green as yesterday’s sell off in weak Dow Jones futures played out against US indices which recorded a stunning rally. The Japanese “Nikkei” is up more than 180 points at the start of the session. Most other Asian indices are also trading modestly positive. Chinese stocks could see more color as Nasdaq-listed internet stocks see good buying interest.

Nifty had a weak day, a day after the best rally in more than 2 months, as weak global signals prompted profit booking with overseas selling and weak US futures recording short positions at their highest. Metals, energy and Rupee weakness all dampened sentiment despite Crude’s biggest decline since early March. Mid caps also followed the trend with the Nifty next 50 falling over 1.83%. The market extent was negative, with the bearers outpacing the gainers by 2:1.

Technical view: Nifty should support around 15250 while 15850 will likely act as resistance on the upside. Bank Nifty should find support around 32600 while 34000 will likely act as resistance.

TRADING call (1-2 days): BUY DLF June future at 304-306. Stop loss: 298.80. Target: 312

Derivative call – (1 month period): BUY Godrej Properties June future at 1165-1175. Stop loss: 1146.5. Target: 1200

About Kristina McManus

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