Indian equity markets may see a bit calmer day today

3 Feb 2023 , 08:54 AM

Indian equity markets may see a bit calmer day today. Asian markets have opened on a mixed note today. Most US markets ended in Green yesterday. Foreign investors may continue their selling today. As more foreign equity markets are rising, many foreign investors are selling Indian stocks to buy stocks in these foreign markets.

US markets saw another superb session yesterday.  Technology stocks led the charge. Nasdaq jumped over 3.25% or 384 points. This makes it one of the best starts to the New Year for Nasdaq index. It is up by 18%, YTD. Dow Jones closed marginally lower, down by 39 points. Money exited utilities & energy stocks to buy technology ones. Meta soared over 18% on the back of excellent results. Bond yields hit 3.37%, down by over 18 basis points. 

Asian markets have opened on a mixed note today. Japanese ‘Nikkei’ is up by 167.44 points.  US rebound in technology stocks is causing global appetite in equities to return. The European indices have had the best start to the New Year since 2009. German ‘Dax’ index is within 100 points of all-time highs.

Nifty saw another day of high volatility yesterday. This was caused by collateral selling in Adani group stocks. Flagship Adani Enterprises was down by another 27%. This saw swings of over 200 points, before the index closed flat. Bank Nifty, however, bucked the trend. It closed with gains of 156 points. IDFC First, IndusInd and Axis led the gainers. Mid-caps saw mixed trade.  Nifty small cap 100 index closed with gains of 0.6%.

Technical View: Nifty is likely to find support at around 17450. 18050 is likely to act as resistance. Bank Nifty is likely to find support at around 40000. 41550 is likely to act as resistance on the upside.

Trading call:(1-14 days) BUY Infosys February future @1580-1590. Stop loss: 1554. Target: 1618.

Derivative call-time period: (1 months) : BUY Mphasis February future @ 2105-2115. Stop loss: 2068. Target: 2155.