Indian equity markets may see a day driven by buying today

17 May 2023 , 08:54 AM

After a day in red yesterday, Indian equity markets may see a day driven by buying today. US markets closed in red yesterday. Asian markets have opened on a mixed note today. Chinese economic data for April is a mixed one.  Industrial production there increased by 5.6% year-on-year, in April. Retail sales increased y-o-y by 18.4%, in the month. These numbers are much below expectations.

US markets saw a close in the red, yesterday, for the 3rd time in 4 days. Concerns over debt ceiling & political posturing saw selling accentuate in Dow Jones. It fell over 300 points. Nasdaq saw a flat close. Amazon & Meta results saw buying interest return to technology stocks.

Asian markets have opened on a mixed note today. Japanese ‘Nikkei’ is well on its way to new highs for the year. It is trading higher by 180 points in early trade today. South Korea & Taiwan markets are also trading in green. Strong ETF flows are causing buoyancy in Asian markets. Most Asian markets are seeing buying as money is flowing back into equities.

Nifty saw a day of profit booking yesterday. Local mutual funds booked profit with traders also joining in. Nifty ended lower by over 112 points. Kotak Bank, Tata Motors & M&M saw profit booking. Buying was seen in BPCL, ONGC & Coal India. Nifty mid-cap 50 index bucked the trend. It closed higher by 0.34%.

Technical View: Nifty is likely to find support at around 18200. 18450 is likely to act as resistance. Bank Nifty is likely to find support at around 43500. 44300 is likely to act as resistance on the upside.

Trading call:(1-14 days) : BUY Reliance May future @ 2455-2465. Stop loss: 2411. Target: 2515.

Derivative call-time period: (1 months): BUY Asian Paints May future @ 3130-3145. Stop loss: 3074.1. Target: 3200.