Indian equity markets may see a mixed day today

9 Feb 2023 , 08:50 AM

Indian equity markets are likely to see a mixed day today. There can be both buying and profit booking today. Some experts believe that RBI will go for another 25 basis points hike in its next monetary policy review in April, after the 25 basis points hike of yesterday.

US markets saw pullback yesterday. Weak Google guidance saw technology stocks succumb to profit booking. Federal Reserve guidance on data also saw profit booking. Dow Jones fell 200 points. Nasdaq fell 200 points. Bond yields closed near 3.60%.  US dollar index consolidated near 103.2.

Asian markets have opened on a mixed note today. Japanese ‘Nikkei’ is trading lower by 110 points. Other markets too are trading muted. US futures indicate to a strong rebound after yesterday’s correction. Walt Disney is leading the charge. It was up by 10% in after hours as its management indicated cut in costs and split in verticals. 

Nifty saw a superb comeback yesterday. RBI rate hike of 25 basis point was already priced in by the markets. Adani twins led the gainers. Heavyweight Reliance added to the strength in the index. Nifty closed higher by 150 points. Bank Nifty was subdued.  Profit booking in Axis & Kotak saw the index close with gains of 50 points. The breadth was positive. Mid-caps led the gainers. Nifty midcap 50 index closed up by 0.93%.

Technical View: Nifty is likely to find support at around 17744. 18150 is likely to act as resistance. Bank Nifty is likely to find support at around 41300. 42300 is likely to act as resistance on the upside.

Trading call:(1-14 days) BUY Ashok Ley February future @ 148-149. Stop loss: 145.4. Target: 151.5.

Derivative call-time period: (1 months) BUY Tata Motor February future @ 441-444. Stop loss: 433.1.  Target: 451.