Indian equity markets may see a day in Green today

28 Mar 2023 , 08:58 AM

Indian equity markets may see a day in Green today. Most other Asian markets are trading in green today. First Citizen will acquire SVB. After this announcement, stock price of First Citizen in over-the-counter (OTC) market jumped by more than 22%. Banking stocks in India too may see some positivity today. 

US markets saw another positive session yesterday.  Rise in yields and oil prices saw shift of demand from IT stocks to banking stocks. Dow Jones closed higher by 190 points. Nasdaq closed lower by 55 points.

Asian markets have opened in the green on positive cues from the US. However, gains are tempered as recent volatility has seen investor sentiment getting dampened.  Weakness in US dollar should cheer Asian equities. Flow of ETF funds tends to get reversed from US to Asian stocks, when dollar weakens.

Nifty saw a day of volatile trade yesterday. The index saw gains of over 140 points in intra-day trading get reduced to 40 points. Profit booking took place in the last one hour of trading.  Expiry of futures & options related pressure also led to selling in index stocks. Reliance, Grasim and Cipla led the gainers.  Adani twins, SBI Life and Power Grid led the losers. Mid-caps saw weakness persist.  Nifty Mid-cap 100 index closed lower by 1.5%.

Technical View: Nifty is likely to find support at around 16900. 17350 is likely to act as resistance. Bank Nifty is likely to find support at around 39000. 40400 is likely to act as resistance on the upside.

Trading call:(1-14 days) : BUY SBI LIFE April future @ 1106-1110. Stop loss: 1086.  Target: 1133.

Derivative call-time period: (1 months): BUY Canara Bank April future @ 277-280. Stop loss: 272.55.  Target: 284.