Global cues from foreign markets are positive today

5 Jan 2023 , 08:43 AM

Cues from foreign markets are positive today for Indian equity markets.  S&P Services PMI index indicates that services activity expanded considerably in the Indian economy in December. 

US markets closed in the green yesterday. This, in spite of the fact, that Federal Reserve minutes of the meeting indicate no plan of interest rate cut in 2023. Bond yields fell over 12 basis points to 3.68%. Globally, markets led by European indices bounced back, as inflation moderated sharply. Brent crude fell over 9.5% in 2 days, its largest fall in over 2 years.
 
Asian markets have opened in the green today. Japanese ‘Nikkei’ is trading higher by over 200 points.  Taiwan & South Korean indices are also trading higher by 1%. Markets seem to be looking forward to New Year optimism on lower inflation & weaker US dollar. Chinese stocks staged a sharp rally led by the Hang Seng, which seems to be the outperformer this year.
 
Nifty saw weakness from the morning, yesterday.  Selling by foreign investors led the index close lower by nearly 190 points. This selling happened as foreign investors became cautious after Federal Reserve meeting minutes came out.  Profit booking in select heavy weight stocks also took place. Bank Nifty was also weak. It closed lower by 466 points.  PNB, Bank Baroda & IDFC First led the losers. Mid-caps also saw collateral damage with  Nifty next 50 closing lower by 1.35%.

Technical View: Nifty is likely to find support at around 18000. 18500 is likely to act as resistance. Bank Nifty is likely to find support at around 42800. 43850 is likely to act as resistance on the upside.

Trading call:(1-14 days) : BUY Coforge January future @3920-3940. Stop loss: 3852. Target : 4010.

Derivative call-time period: (1 months) : BUY TVS Motor January future @ 1020-1025. Stop loss: 1001.55.  Target: 1043.