Global cues are positive for Indian equity markets today

16 May 2023 , 08:57 AM

Global cues are positive today for Indian equity markets. US markets closed in the green yesterday. Most Asian markets have opened in green today. Wholesale price inflation rate of India stood at – 0.92% in April. Oil prices have increased as OPEC tightens supply.

US markets saw a close in the green yesterday. This was led by technology stocks.  Nasdaq gained 81 points. Dow Jones closed higher by 47 points. Bond yields declined to 3.48%. US dollar saw some profit booking. US dollar index closed near 102.3. Most global indices are on an uptrend. European indices are hitting all-time highs.

Asian markets have opened in the green today. This is led by the Japanese ‘Nikkei. It is up by another 250 points today after the strong rally of the last few days. The other outperformer today is Hang Seng index. It has started to move up after consolidating for some time. Metals could be good proxy play today. Expectations of increase in Chinese demand soon has started to cause bottom fishing in most commodity stocks.

Nifty saw another superb day yesterday. The index ignored Karnataka election results. It hit fresh 6-month highs. Foreign buying has been relentless over the past month. Excellent results from Tata Motor & DLF saw the stocks gain  over 4% & 8% respectively. Short covering-cum-value buying saw the high beta plays lead the indices higher .Nifty hit 18458. Bank Nifty hit new highs at 44,151. 

Technical View: Nifty is likely to find support at around 18270. 18600 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 Steel May future @ 108-108.5. Stop loss: 106.05. Target: 111.

Derivative call-time period: (1 months): BUY ONGC May future @ 165.5-166. Stop loss :162.5.  Target: 170.