Indian equity markets may see a volatile day today

2 Feb 2023 , 08:58 AM

Indian equity markets may see another volatile day today. Budget has brought some positivity. It has made income up to Rs 7 lakhs tax free. US Federal Reserve has raised interest rate by 25 basis points. This raise was as per expectations. Adani Group called off its Rs 20,000 crore FPO yesterday, after getting it fully subscribed. This will add to negativity in market sentiments today.

US markets saw a volatile session yesterday. Federal Reserve hiked interest rate by 25 basis points. Dow Jones gyrated, from down by 400 points to up by 300 points, before closing flat. Nasdaq continued its winning streak, gaining over 230 points. Nasdaq has climbed over 15% in the last month. US dollar index closed at its lowest in over 8 months at 100.8. 

Asian markets have opened in the green today. Japanese ‘Nikkei’ is trading higher by over 100 points, in early trade. Taiwan and South Korean indices are also trading in the Green. They have seen over 12% returns in the last month.

 Nifty saw another day of high volatility yesterday.  The bear attack on Adani stocks dampened a superb budget. The budget focused on capex and bringing relief to middle class households. Nifty saw swings of over 600 points. Bank Nifty swung by 2500 points. Adani Group has decided to call off the FPO, given the volatility in its stocks’ prices. Large cap Banks, FMCG and Metals led the gainers. Insurance stocks led the losers along with the Adani stocks. 

Technical View: Nifty is likely to find support at around 17350. 18050 is likely to act as resistance. Bank Nifty is likely to find support at around 39500. 41550 is likely to act as resistance on the upside.

Trading call:(1-14 days) : BUY SRF February future at 2215-2230. Stop loss: 2177.5. Target: 2270.

Derivative call-time period: (1 months) : BUY Siemens February future @ 2940-2965. Stop loss: 2895.  Target: 3015.