Indian equity markets may see an uncertain day today

18 Apr 2023 , 09:00 AM

Indian equity markets may see another uncertain day today. IT stocks saw some correction in their prices yesterday. Some of them may see further correction today. Corporate results will continue to determine the course of market movement this week. In US, Charles Schwab’s banking division saw its customer deposits in the March quarter go down y-o-y by 11% to $325.7 billion. Results of more mid-sized American banks will come this week. This will show the extent of the impact of banking crisis. This in turn will affect the sentiments of foreign investors. 

US markets saw another positive closing yesterday.  Strong bank earnings resulted in banking stocks gaining. Money moved from IT stocks to financial stocks. Dow Jones closed higher by 100 points. Nasdaq closed higher by 34 points. Bond yields rose to 3.58%. US dollar index closed over 102.

Asian markets have opened on a mixed note today.  Japanese ‘Nikkei’ is trading higher by over 140 points in early trade. Markets are awaiting corporate results. Commodity and steel stocks like Posco are at all-time highs in South Korean market. 

Nifty saw a day of correction after its longest winning streak in over 2 years. Infosys’ earnings weakness led the correction in IT stocks. The index hit lows of down by 253 points before closing down by 121 points. Banks led the gainers. Inflation numbers for March have come at 1-year lows. Bank Nifty closed higher by 130 points. Nestle, Power Grid & SBI led the gainers. Infosys, Tech Mahindra and HCL Tech led the losers. Mid-caps bucked the trend.  Nifty Midcap 100 index closed, up by 0.39%. 

Technical View: Nifty is likely to find support at around 17650. 18000 is likely to act as resistance. Bank Nifty is likely to find support at around 41900. 42700 is likely to act as resistance on the upside.

Trading call:(1-14 days) BUY ZEE ENT April future @ 204-205. Stop loss : 200.4.  Target : 209.

Derivative call-time period: (1 months) : BUY L&T April future @ 2220-2230. Stop loss : 2180.5. Target: 2270.