Indian equity markets may see a day of volatility today

16 Mar 2023 , 08:49 AM

Indian equity markets may see a day high on volatility today. US markets saw volatility yesterday. Asian markets have opened on a volatile note today. Banking stocks may continue to see selling pressure.

US markets saw another extremely volatile session yesterday. Credit Suisse’s near-term liquidity problems saw stocks plunge down by 20%. This followed the sharp fall in European bank stocks. Dow Jones  traded lower by over 700 points before closing down by 280 points. Nasdaq recovered to close in the green after being down by 200 points. Oil prices fell to 3-year lows. Bond yields recorded sharpest fall in over 20 years, down by 30 basis points.

Asian markets have opened in the red today. Japanese Nikkei is showing some recovery after Credit Suisse got funding support from Swiss central Bank. This has averted any immediate crisis. The Japanese index was down by over 600 points when it opened. But it is now trading, down by 280 points. US futures have rebounded to trade in the green. Chinese stocks will see volatility because of the exposure of many of them to European banks.

Nifty saw a day of weakness extend for 6th day running, yesterday. Global bad news saw selling accelerate in last hour with the index trading below 17000. Bank Nifty was also down by 360 points. Large cap banks like IndusInd, ICICI and HDFC bank were under pressure. Nifty top gainers were the Adani twins, Asian Paints and Tata Steel. Bharti, Reliance and SBI were main losers on Nifty.

Technical View: Nifty is likely to find support at around 16850. 17450 is likely to act as resistance. Bank Nifty is likely to find support at around 38800. 40500 is likely to act as resistance on the upside.

Trading call:(1-14 days) : BUY NTPC March future @ 177.5-178.5. Stop loss: 174.4. Target: 182.

Derivative call-time period: (1 months): BUY Tech Mahindra March future @ 1113-1118. Stop loss: 1092.75. Target: 1140.