Markets may decline today

6 Jun 2023 , 09:03 AM

Indian equity markets may see a day negative day today. Yesterday, markets ended the day on a positive note as investors await US Fed interest rate hike data.

Globally, US markets wrapped up in red territory. Dow Jones closed 200 points lower. Nasdaq ended the day with a decline of 11 points. S&P 500 was down by 0.20%.

In today’s trade, Asian peers are moving between ups and downs as traders anticipate that the US Fed Reserve may not pause the interest rate hike in its upcoming meeting next week. Chinese Shanghai Composite is trading 0.13% higher. Hong Kong’s Hang Seng added 1.07% so far. Japan’s Nikkei 225 closed 0.41% higher. Taiwan index is trading 0.34% higher.

Yesterday, Nifty 50 closed higher by 60 points. Nifty Bank ended the day with a gain of 164 points. Mahindra & Mahindra, Axis Bank, and Tata Motors led the gainers’ chart yesterday. Among the top losers were Divi’s Lab, Asian Paints, and Tech Mahindra.

Indian rupee registered its biggest decline since March as the expectations of a Fed rate hike increase on robust US employment data. 

Oil prices slip as Saudi Arabia announces further cut in output.

Technical View: Nifty finds support around 18450, while 18700 will act as resistance. Bank Nifty finds support around 43700 while 44600 will act as resistance on the upside.

Trading call:(1-14 days) BUY HDFC Bank June future @1613-17, Stop Loss 1580 and Target 1653

Derivative call-time period: (1 month) Buy Hindalco June future @421-23, Stop Loss 413 and Target 431