Indian equity markets are likely to see a day in red today

8 Mar 2023 , 08:49 AM

Indian equity markets are likely to see a day in red today. US markets ended the day in red yesterday. US markets came down sharply due to hawkish comments by Federal Reserve Chairman Jerome Powell in his testimony before the US Congress. These hawkish comments indicated that the US central bank will continue with its trajectory of increasing interest rates. Bond yields rose to 3.99%. US dollar index rose to 105.5. This saw Dow Jones fall by over 560 points. Nasdaq fell by 145 points.

Asian markets have opened in the red today, on the back of US sell-off of yesterday. However, Japanese ‘Nikkei’  is bucking the trend. It is trading mildly positive. Chinese stocks are the main losers today as Hang Seng index is seeing profit booking. It is down by 450 points in early trade.

Nifty saw another day of follow-up gains on Monday. It closed higher by 117 points after seeing profit booking in the last hour. This saw the gains of nearly 200 points coming down. Bank Nifty saw profit booking. It closed with gains of 99 points after being up by over 420 points in intraday trading. Adani stocks again saw buying interest. The group’s stocks recouped some of the lost market capitalization. Adani Ent, Tata Motors and ONGC were the big gainers. Britannia ,Tata Steel and JSW Steel were the main losers.

Technical View: Nifty is likely to find support at around 17450. 17850 is likely to act as resistance. Bank Nifty is likely to find support at around 40700. 41800 is likely to act as resistance on the upside.

Trading call:(1-14 days) : Sell Hindalco March future @ 414-417. Stop loss: 423.80. Target : 407.5.

Derivative call-time period: (1 months): Sell Vedanta Ltd March future @ 287-290. Stop loss: 294.25.  Target: 283 .