Markets may see a day in red today

Indian equity markets are likely to see a day in red today. Global cues are negative today for the markets. US markets closed in the red yesterday. Asian markets have opened in red today. FDI inflows in India declined for the first time in a decade in FY 23. They came down y-o-y by 16% to $571 billion.

US markets saw another weak day yesterday. Profit booking took place across the board. Unresolved talks on debt ceiling continued to cause volatility in stock markets. Dow Jones fell another 230 points. Nasdaq finally saw a day in red. It ended, down by 160 points. Oil prices rose by over $2 per barrel to close near $73.7 per barrel. Bond yields eased to 3.68%.

Asian markets have opened in the red today. Profit booking is being seen due to weak cues from US markets, yesterday. Japanese ‘Nikkei’ is down by over 220 points in early trade today. Most other Asian indices are also trading in red. Chinese stocks may see action as the ‘Yuan’ is seeing buying interest. Appreciation in Yuan due to this could see importers do well in the near term.

Nifty saw a day of consolidation yesterday, with most gains getting wiped out by selling in the last hour. The index closed, up by 33 points, after crossing 18,400 level in intraday trade. Bank Nifty closed with gains of 70 points, after hitting 44095 during intraday trade. Adani Ent, Divi’s Lab & Bajaj Finserv led the gainers. Profit booking was seen in Apollo Hospital, HCL tech & Grasim.

Technical View: Nifty is likely to find support at around 18200. 18500 is likely to act as resistance. Bank Nifty is likely to find support at around 43500. 44300 is likely to act as resistance on the upside.

Trading call:(1-14 days) : BUY Tata Communications May future @ 1230-1240. Stop loss :1210.35. Target :1265.

Derivative call-time period: (1 month): BUY Grasim May future @ 1700-1710. Stop loss: 1661.10. Target: 1740.