Indian equity markets may see a day of heavy selling today

5 Apr 2023 , 08:56 AM

Indian markets may see a day of heavy selling today. US markets ended in red yesterday.  New job openings in February in United States were much below expectations. This has given strength to the expectation that US economy will slip into recession soon.

US markets saw profit booking yesterday, after the strong run up of the last 5 days. Dow Jones closed lower by 198 points. Nasdaq fell 63 points. US dollar index hit 1 year lows to touch near 101.5. Bond yields also fell to 3.35%. Recession fears stoked flight to safety. CEO of JP Morgan Chase said that the banking crisis is far from over. New job openings in February were below expectations. 

Asian markets have opened on a mixed note today. Japanese ‘Nikkei’ is in read as the weakness in US dollar is causing decline in stocks of many export oriented companies. Most other Asian indices are trading on a mixed note. Weakness in US dollar is also causing strong ETF flows into Asian equities. ASX & the New Zealand markets are trading in the green. 

Nifty saw a day of gains for the 3rd straight day on Monday. The index closed higher by 38 points. Bank Nifty led the gains. It closed higher by 204 points. Hero Motors, Bajaj Auto & Coal India led the gainers. BPCL, Adani Enterprises & Apollo Hospital saw profit booking. Mid-caps also saw strength. Nifty midcap 100 index closed up by 0.74%.

Technical View: Nifty is likely to find support at around 17200. 17600 is likely to act as resistance. Bank Nifty is likely to find support at around 40300. 41400 is likely to act as resistance on the upside.

Trading call:(1-14 days) : BUY Axis Bank April future @ 866-870. Stop loss: 850.65.  Target: 886.

Derivative call-time period: (1 months) : BUY HCL Tech April future @ 1098-1103. Stop loss:1079. Target: 1125.