A day in Green may be on the cards today for Indian equity markets

21 Mar 2023 , 08:58 AM

Indian equity markets may see a day in Green today. US markets closed in green yesterday. This happened on the back of the expectation that US Federal Reserve will have to give up its hawkishness on interest rates in its meeting tomorrow. Its unrelenting hawkishness has triggered the banking crisis.

US markets saw a comeback yesterday. Dow Jones closed higher by 380 points . Nasdaq closed, up by 45 points. Money moved from technology stocks to banks & financials stocks. This happened as most Central Banks are infusing more capital into banks and providing support to banks. This is reducing fears about escalation of the banking crisis. Bond yields closed near 3.47%. US dollar index fell to close near 103.3.

Asian markets have opened in the green today. ASX & South Korean markets are leading the gains today.  Japanese ‘Nikkei’ is closed for a holiday today. Most investors await the Federal Reserve meet on policy rates, tomorrow. The expectation is that Federal Reserve will moderate and adopt a dovish stand tomorrow. This could see equities do well in the near term with Asian markets outperforming. 

Nifty saw a day of deep swings yesterday.  The index started weak from opening bell on global cues. This prompted selling by foreign investors to accentuate. Nifty fell to 6-month lows. The intra-day fall in Nifty 50 was of 278 points before last hour recovery saw it close lower by 111 points. Bank Nifty also saw weakness extend. It fell over 630 points in intraday trade, before closing lower by 230 points.

Technical View: Nifty is likely to find support at around 16850. 17350 is likely to act as resistance. Bank Nifty is likely to find support at around 38800. 40000 is likely to act as resistance on the upside.

Trading call:(1-14 days) : BUY Hindalco March future @ 385-388. Stop loss: 378.75.  Target: 395. 

Derivative call-time period: (1 months): BUY SAIL March future @ 85.5-86. Stop loss: 84.05. Target: 87.5.