Indian equity markets likely to see another day of volatility

24 Mar 2023 , 09:01 AM

Indian equity markets may see another day of volatility today. Bank of England raised interest rate by another 25 basis points yesterday. The central bank did this after inflation rate for February came at 10.4%. The UK economy which narrowly missed a recession in the past few quarters is now highly likely to enter into a recession in the coming quarters, after this rate hike.

US markets saw another volatile day yesterday. Dow Jones swung from up by 380 points to close down by 140 points, before closing higher by 75 points. Nasdaq led the gainers, closing higher by 117 points, after being up by over 290 points in intra-day trade. Bond yields hit 4 month lows @ 3.39%. US dollar slipped to 102. 

Asian markets have opened in the red after yesterday’s smart rally. Japanese ‘Nikkei’ is trading lower by 140 points. Chinese stocks are also reacting to positive data on manufacturing but are seeing profit booking after yesterday’s smart rally.  

Nifty saw a day of volatile trade yesterday. Bank Nifty led the intra-day gains before seeing 2nd half weakness. This saw the indices close in the red . Nifty closed lower by 75 points.  Bank Nifty closed lower by 380 points. SBI, Kotak bank & Bajaj Auto led the losers.  Hindalco, Maruti & Nestle led the gainers. Mid-caps also saw weakness. Nifty Mid-cap 50 index closed lower by 0.6%.

Technical View: Nifty is likely to find support at around 17000. 17350 is likely to act as resistance. Bank Nifty is likely to find support at around 39300. 40400 is likely to act as resistance on the upside.

Trading call:(1-14 days) : BUY LTIM March future @ 4590-4620. Stop loss: 4512. Target :4720.

Derivative call-time period: (1 months) : Sell Berger Paint March future @ 574-578. Stop loss: 587.5. Target: 564.5.