Indian equity markets may see a mixed day today

10 Jan 2023 , 08:56 AM

Indian equity markets may see some selling pressure from Foreign Portfolio Investors today. US markets had a mixed day yesterday.  Asian markets too are trading on a mixed note today.

US markets saw a volatile day yesterday.  Dow Jones closed lower by 110 points, after being up by over 300 points in intra-day trade. Nasdaq closed higher by 66 points, after seeing intra-day gains of over 170 points. This volatility occurred due to out-of-turn comments by Federal Reserve members,  that Federal Reserve tightening will continue well into 2023. Bond yields fell to 3.52%. US dollar index hit 102.76, to touch a 5-month low.
 
Asian markets have opened in the green today. Japanese ‘Nikkei’ has reopened after a holiday on Monday. It is trading higher by 230 points in early trade. Most other Asian indices are trading flat. After a smart rally early this month, consolidation is on the cards. Taiwan & South Korea indices had a field day yesterday. Value buying saw both these indices rise sharply. The undertone outside US seems to be to buy the dip, as most negative factors have already been priced into.
 
Nifty saw a superb comeback yesterday after 3 straight days of losses. Global cues, short covering and local mutual fund support saw the Nifty gain over 240 points. Bank Nifty also rose by over 390 points. IndusInd Bank, Axis, Bandhan Bank, M&M, SBI LIFE and TCS were among the gainers. Mid- caps also saw color but were underperformers vis-a-vis Nifty 50. Nifty 100 index closed higher by 1.30%.

Technical View: Nifty is likely to find support at around 17950. 18400 is likely to act as resistance. Bank Nifty is likely to find support at around 42000. 43350 is likely to act as resistance on the upside.

Trading call:(1-14 days): BUY DLF January future @ 373-376. Stop loss: 367.3. Target: 383.

Derivative call-time period: (1 months): BUY Muthoot Finance January future @ 1072-1076. Stop loss:  1052.25. Target: 1096.