Markets could register profits today

Indian stock markets could see profits today from investors and traders, following yesterday’s gains. Shares of Bajaj Finance, Bajaj Finserv, Britanning, etc. may sell off today as investors may take profits on these stocks. Oil prices fell further in the early hours of today. This happened due to fears of a global recession beginning to materialize. Even the head of the IMF now accepts that the likelihood of a global recession cannot be ruled out.

US markets ended higher as Federal Reserve minutes indicated a rate hike to control inflation later this month. Dow Jones closed 69 points higher after rising more than 250 in intraday trading. The Nasdaq closed up more than 40 points as Meta, Amazon and Apple lead the gainers. Bond yields hit 2.90% as the US dollar hit 102 against the euro, a 20-year high.

Asian markets opened quietly today. The Japanese ‘Nikkei’ is trading up 70 points. The South Korean “Kospi” is trading up 1% after the massive sell-offs seen in recent days. Chinese equities could post gains as ETF flows and rising economic activity bode well in the short to medium term for the economy and businesses.

Nifty had a volatile day as it hit 16000 and broke through after seeing intraday swings of over 200 points as short hedging coupled with buying value saw the index rally back to the level of 16000 after 2 months. Bank Nifty led the winners with Kotak and SBI leading the way as the index closed up 500 points. Mid-caps also saw action with the Midcap 50 index up 2.18%. The extent was also positive for broader markets.

Technical view: Nifty should find support around 15850 while 16200 will likely act as resistance on the upside. Bank Nifty should find support around 33700 while 34900 will likely act as resistance.

TRADING call (1-2 days) BUY Jindal Steel July future @ 332-334. Stop loss: 326.25. Target: 340

Derivative call – Period: (1 month) BUY Persistent system Future July @3325-3365. Stop loss: 3273. Target: 3410