Indian equity markets may begin the week in Green

8 May 2023 , 08:59 AM

Indian equity markets may begin the week in Green, today.  March quarter results of some more banks are positive. Britannia and Marico have also posted good March quarter results. Paytm has been able to narrow down its losses significantly, in the quarter.

US markets saw a superb closing to the week, on Friday. Jobs numbers saw growth across the board. Dow Jones closed higher by 540 points. Nasdaq jumped over 270 points. Apple’s results saw stocks rally by 7%. Bond yields inched higher to 3.43%. US dollar index closed near 101.2.

Asian markets have opened on a mixed note today. Japanese ‘Nikkei’ is trading in the red. It is down by 140 points in early trade. South Korean ‘Kospi’ and Taiwan market are rallying strongly. Technology stocks are leading the bounce. Chinese stocks may join the rally too.  US dollar weakness coupled with strong earnings from large US tech giants could see Chinese stocks too do well.

 Nifty saw a weak session on Friday. Sudden overnight rebalancing of MSCI index weights saw almost US$ 150-200 million worth of selling in HDFC bank & HDFC. This led to a sell-off in banks. Bank Nifty fell by over 1000 points. Nifty fell by over 185 points. The high weightage of HDFC twins in the index saw 80% of the fall in the index being due to fall in them. Mid-caps also saw profit booking. PSU stocks saw huge unwinding after a big rally. Nifty Mid-cap 50 index fell 0.94%.

Technical View: Nifty is likely to find support at around 18050. 18500 is likely to act as resistance. Bank Nifty is likely to find support at around 42400. 43700 is likely to act as resistance on the upside.

Trading call:(1-14 days) : BUY PFC May future @ 169-170. Stop loss: 166.15. Target :173.

Derivative call-time period: (1 months) : BUY Federal Bank May future @ 126.5-127.5. Stop loss: 124.55. Target :130.