Indian equity markets may see a mixed day today

15 May 2023 , 09:02 AM

Indian equity markets may see a mixed day today. Inflation rate in April came down to 4.7%. This is the lowest level of inflation rate in India in 18 months. 

US markets saw another volatile day on Friday. They ended the week in red.  Dow Jones closed flat after seeing intra-day swings of over 300 points. Nasdaq saw profit booking to close lower by 43 points. Bond yields recovered to close near 3.45%. Oil prices dipped further. WTI crude closed at $70 per barrel.

Asian markets have opened on a mixed note today. Japanese ‘Nikkei’ is extending Friday’s gains. It is up by another 155 points in early trade. Most other Asian indices are trading sideways. Consolidation is happening today due to lower bond yields, weaker US dollar and oil prices at 1-year lows. ETF flows are also happening into Asian equities. Aluminum prices have risen sharply due to supply concerns.

Nifty saw another volatile day on Friday. Early morning decline of of over 100 points was bought by foreign investors. They have made the biggest buying in over 4 months, till date in May. Nifty ended higher by 17 points. Bank Nifty closed higher by 319 points. It is just 300 points shy of all-time highs. Weekend saw inflation numbers come at 2-year lows. This will cause local bond yields to go down.

Technical View: Nifty is likely to find support at around 18220. 18500 is likely to act as resistance. Bank Nifty is likely to find support at around 43000. 43900 is likely to act as resistance on the upside.

Trading call:(1-14 days) BUY Indian Hotels May future @ 357-360. Stop loss: 351.15. Target: 370.

Derivative call-time period: (1 month): BUY GMR Infra May future @ 46-46.25. Stop loss:45.1. Target: 47.5.