Indian equity markets may see a day in green today

15 Mar 2023 , 08:54 AM

Indian equity markets may see a day in Green today, after some days. US markets closed in the green yesterday. Asian markets have opened in the green today. Bank stocks in US showed modest recovery yesterday. Private equity firms such as KKR, Apollo etc. may buy some of the loans of SVB.

US markets saw another volatile trading day yesterday, before closing in the green. CPI data for February came in line with expectations, at 6%. This saw technology stocks rally. Nasdaq closed higher by 230 points. US dollar index fell to 103.5. Oil saw biggest decline in over 3 months. It is now trading near US $78 per barrel.

Asian markets have opened in the green today, led by the South Korean & Taiwan markets. Both these markets are up nearly 2%. Decline in US dollar is causing more inflows in local currency terms in Auto, Banking and IT stocks. The fall in crude oil prices could act as a catalyst to spur growth in Asian equities. Inflation also seems to be moderating with demand for consumption rising.

Nifty saw a day of weakness yesterday.  Foreign investors sold aggressively to offset the collateral risk of US bank failures. This saw the index close lower by 110 points. Bank Nifty also drifted lower, closing down by 150 points. The undertone remains weak but fundamentals remain strong. Nifty has become the best proxy play against  fall in oil prices and weakness in US dollar.

Technical View: Nifty is likely to find support at around 17050. 17650 is likely to act as resistance. Bank Nifty is likely to find support at around 39300. 40500 is likely to act as resistance on the upside.

Trading call:(1-14 days): BUY Escorts March future @ 1910-1920. Stop loss 1876.7.  Target: 1960.

Derivative call-time period: (1 months): BUY Maruti March future @ 8525-8550. Stop loss: 8366. Target: 8720.