Indian equity markets may see a mixed day today

20 Feb 2023 , 09:00 AM

Indian equity markets may see a mixed day today. Global cues are mostly mixed today. The probability of US Federal Reserve continuing its hawkish stand on interest rates continues to cast its shadow on Indian equity markets. RBI has said that any interest rate hike by US Federal Reserve will hurt the Indian economy.

US markets saw a volatile session on Friday.  Dow Jones, from down by 200 points, closed higher by 130 points. Nasdaq closed lower by 68 points, after being down by 200 points in intra-day trade. Bond yields hit 3.91% before closing lower at 3.81%. Oil prices slipped. Brent crude came down to US$82 per barrel. 

Asian markets have opened in the green today.  Japanese ‘Nikkei’ is trading higher by 20 points in early trade. Most Asian indices have opened flat to marginally positive. This as rise in yields and hawkish out-of-turn comments by Federal Reserve members indicate that higher interest rate trajectory may continue in US.

Nifty saw another volatile day on Friday on the back of weak US cues and stronger US$.  Rupee weakened against the dollar.  Profit booking was done by both local & foreign inventors. This saw the index close lower by 91 points. The main loser was the Bank Nifty. It ended lower by 500 points. Weakness in large cap banks dragged the indices lower. Mid-caps also saw weakness. Nifty midcap-100 index closed lower by 1%.

Technical View: Nifty is likely to find support at around 17850. 18250 is likely to act as resistance. Bank Nifty is likely to find support at around 40800. 42000 is likely to act as resistance on the upside.

Trading call:(1-14 days): BUY Ultratech Cement February future @ 7300-7330. Stop loss: 7168.75. Target: 7465.

Derivative call-time period: (1 months): BUY Federal Bank February future @ 127-128. Stop loss:124.90. Target: 131.