Indian equity markets likely to start the day in Green today

20 Jan 2023 , 08:59 AM

Indian equity markets are likely to start the day in Green today. US markets ended the day in red yesterday. Asian markets have opened today on a positive note. Selling by foreign portfolio investors somewhat slowed down yesterday. 

US markets saw another day of weakness yesterday. Markets worried over rate action by the Federal Reserve, that is due on 1st February. Consumer demand is seeing weakness. This indicates recession in 1st half of 2023. Dow Jones closed lower by 250 points. It has lost over 1200 points in 3 sessions. Nasdaq also lost momentum. It closed lower by 104 points. US dollar index remained unchanged near 102. Bond yields closed near 3.39%.

Asian markets have opened in the green. They seem to be ignoring the US cues for 2nd day running. Japanese ‘Nikkei’ is trading mildly in the green. Hang Seng is up by over 200 points in early trade.  ASX & New Zealand indices are also trading in the green. Markets look forward to better equity returns in 2023. Chinese stocks are in the limelight. Reopening sees expectations of corporate & consumer spending.
 
Nifty saw weakness yesterday. Global cues dominated. The fall was restricted to 57 points. Foreign investors turned buyers for 2nd straight day. Metals, Energy, PSU and Insurance stocks led the gainers. Profit booking was seen in consumer stocks led by Hind Unilever & Asian Paints. Mid-caps also saw selling pressure. Nifty small-cap 50 index was down 0.49%.  

Technical View: Nifty is likely to find support at around 17850. 18300 is likely to act as resistance. Bank Nifty is likely to find support at around 41800. 42850 is likely to act as resistance on the upside.

Trading call:(1-14 days): BUY SBI Card January future at 763-767. Stop loss: 749.80. Target :781.

Derivative call-time period: (1 months): BUY ABB January future @ 2915-2925. Stop loss: 2862. Target: 2979.