Indian equity markets may see a mixed day today

23 Mar 2023 , 08:57 AM

Indian equity markets may see a mixed day today. US Federal Reserve went for a lower 25 basis point hike yesterday. The moderation of Federal Reserve’s hawkishness on interest rates is a positive factor for Indian economy and Indian equity markets. 

US markets saw volatility yesterday. Federal Reserve raised rates by 25 basis points. But US Federal Reserve Chairman Jerome Powell said that an interest rate cut was not part of the baseline expectations this year. Dow Jones swung from 130 points up to close near the lows of the last 15 minutes, down by 530 points. Nasdaq also closed lower by 190 points, after being almost flat for most of day. US dollar index hit 1-year lows, to close near 102.  Bond yields remained near 3.45%.

Asian markets have  opened in the red today due to weak US cues. Some of the early losses have been recovered though.  Japanese ‘Nikkei’ is trading down by 140 points. US$ hitting fresh lows will hurt Japanese exporters. Most other Asian markets are trading mildly lower. Weaker US$ will see flows into ETF funds and more buying of Asian equities.

Nifty saw a day of consolidation yesterday before the US Federal Reserve meeting on rates. Buying interest was seen from both foreign & domestic investors. Foreign investors turned net buyers yesterday.  Banks & cement stocks saw buying. Some buying was also seen in mid cap IT stocks. Nifty closed with gains of 44 points. Bank Nifty closed higher by 104 points. HDFC Life, Bajaj Finserv, Bajaj Finance led the gainers. Profit booking was seen in BPCL, NTPC & Coal India.

Technical View: Nifty is likely to find support at around 17000. 17350 is likely to act as resistance. Bank Nifty is likely to find support at around 39500. 40400 is likely to act as resistance on the upside.

Trading call:(1-14 days) BUY Canara Bank March future @ 284-286. Stop loss: 279.3. Target :291. 

Derivative call-time period: (1 months) : Sell HAL March future @ 2665-2675. Stop loss :2723.40. Target :2615.