Indian equity markets may see a day in Green today

23 Jan 2023 , 09:04 AM

Indian equity markets are likely to see a day in Green today. They are likely to be more in focus of foreign investors today. Most other Asian markets are closed today because Chinese Lunar year holiday.

US markets saw strong rebound on Friday.  Technology stocks led the way. Nasdaq closed higher by 2.66% or 288 points.  Dow Jones closed higher by 330 points. US dollar edged lower to 6-month lows, near 101. Bond yields remained unchanged near 3.45%. 

Asian markets have opened in the green today. Japanese ‘Nikkei’ is up by over 300 points in early trade. Most Asian markets will be closed this week for the Chinese ‘Lunar’ holidays. Hence the action will be in the ASX & Japanese indices. Chinese markets have closed for the holiday at the cusp of a new bull rally.
 

Nifty saw weakness on Friday.  Foreign ETF outflows happened. Royalty issues regarding Hindustan Unilever saw consumption stocks like HUL & Asian Paints drive the index lower by 80 points. Banks were in momentum. HDFC Bank, ICICI & SBI saw the Bank Nifty close up by 180 points. Earnings from banks across the board beat estimates. This should see the Bank Nifty lead the gainers today.

Technical View: Nifty is likely to find support at around 17850 today. 18300 is likely to act as resistance. Bank Nifty is likely to find support at around 42830. 43550 is likely to act as resistance on the upside.

Trading call:(1-14 days) BUY Ashok Leyland January future @ 144-145. Stop loss :141.65. Target 147.5.

Derivative call-time period: (1 months): BUY IDFC First bank January future @ 59.25-59.75. Stop loss: 58.35. Target: 61.