Indian equity markets likely to open on a cautious note today

1 Feb 2023 , 08:48 AM

Indian equity markets are likely to open on a cautious note today. FY 24 Budget will be tabled in the parliament today by the Government.  US Federal Reserve will also announce its interest rate hike decision later in the evening today. All these events make today a day of action.

US markets saw excellent close to the month of January, yesterday. Dow Jones closed higher by 368 points. Nasdaq jumped another 190 points to record its best month in over 1 year. Bond yields closed unchanged near 3.50%. US dollar index closed near 102.   

Asian markets have opened in the green today, following the stellar run in US stocks yesterday. All eyes are on Federal Reserve action today. The consensus is that it will go for a 25-basis rate hike. Japanese ‘Nikkei’ is trading higher by 170 points. South Korean ‘Kospi’ and the Taiwan indices are also up strongly. Chinese stocks could see action as reopening is causing big recovery in economic growth.

Nifty saw another day of high volatility, with the Adani FPO sailing through. This saw banks lead the recovery. Bank Nifty closed higher by 227 points. Nifty closed almost flat. Mid-caps led the gainers. Nifty midcap 100 index closed up by 1.60%.SBI, M&M and Power Grid led the gainers. Bajaj Finance, TCS and Tech Mahindra saw profit booking.

Technical View: Nifty is likely to find support at around 17550. 18050 is likely to act as resistance. Bank Nifty is likely to find support at around 40050. 41550 is likely to act as resistance on the upside.

Trading call:(1-14 days) BUY Bank of Baroda February future @ 168-170. Stop loss :165.60. Target: 173.

Derivative call-time period: (1 months) : BUY SBI February future @ 559-561. Stop loss: 549.7. Target: 572.