Indian equity markets may see a day in red today

22 May 2023 , 08:52 AM

Indian equity markets are likely to see a day in red today. Markets will factor in the probable disruptive impact of demonetization of Rs 2,000 notes on the economy and economic recovery.

US markets saw a pause and some profit booking on Friday. Markets digested the good news from US Federal Reserve Chairman, Jerome Powell. He indicated that there will be no interest rate hike in June. Dow Jones fell 109 points. Nasdaq fell 30 points. Bond yields hit 3.65%. Oil prices came down further. WTI crude is now trading near $71 per barrel.

Asian markets have opened on a mixed note today. Japanese ‘Nikkei’ is also taking a pause after it hit fresh new 52 week highs in the past week. Most other Asian indices are trading flat. Profit booking is being seen. Chinese stocks could react positively as data there suggests that manufacturing has picked up in the economy.

Nifty saw a day of early weakness get bought in, on Friday. Local mutual funds bought strongly to see the index close higher by 75 points, after being down for 3 straight days. Adani twins, Tata Motor & Tech Mahindra led the gainers. Profit booking was seen in Divi’s Lab, ONGC & Britannia. Mid-caps also bounced back. Nifty Next 100 index closed up by 0.41%.

Technical View: Nifty is likely to find support at around 18100. 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 DLF May future @ 468-472. Stop loss: 460.70. Target: 480

 Derivative call-time period: (1 month): BUY SBI May future @ 574-577. Stop loss: 563.5. Target: 588.