Indian equity markets may see a mixed day today

26 May 2023 , 09:05 AM

Indian equity markets may see a mixed day today. Markets saw a sharp rise in the last 2 hours, yesterday. This rise may be followed by some profit booking today. 

US markets saw another day of outperformance of Nasdaq. The index gained another 213 points making it Year-to-date (YTD) returns of 22%. Nvidia’s stock price gained 25%. This has made it the 1st chip company to hit US$1 trillion market capitalization. Bond yields hardened to 3.81%. Oil prices drifted lower. WTI crude is trading near $ 71.7 per barrel. 

Asian markets have opened in the green today. Japanese ‘Nikkei’ is up by over 220 points in early trade. The other gainers include the South Korean ‘Kospi’ & the Taiwan index. Taiwan index can be said to be the proxy of chips & semiconductor stocks. Chinese stocks have underperformed the region.  Some Chinese technology stocks that are also listed in US could see gains.

 Nifty saw a day of high volatility yesterday. Expiry of the May series saw the index gyrate over 140 points before closing higher by 35 points. Bank Nifty also saw huge swings with the index being down over 350 points before closing flat. Bajaj Auto, Adani Ent & Bharti led the gainers. Profit booking was seen in Wipro,Tata Motors & IndusInd Bank. Mid-caps bucked the trend. Nifty Midcap 50 index closed higher by 0.69%.

Technical View: Nifty is likely to find support at around 18200. 18500 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 GMR June future @ 45-45.5. Stop loss: 44.2. Target: 47.

 Derivative call-time period: (1 month): BUY ABFRL June future @ 199.5-200.5. Stop loss: 196. Target: 205.