Indian equity markets may see another day in red today

27 Jan 2023 , 08:51 AM

Indian equity markets may see another day in red, today. Markets ended in red on Wednesday after a Hindenburg Research report came out with negative comments about Adani Group. This report depressed market sentiments. Adani Group has come out with point-by-point rebuttal of the allegations made in the Hindenburg Report. 

US markets saw superb rally yesterday. Technology stocks led the comeback. S&P 500 index reclaimed 4000 level.  Nasdaq closed higher by 200 points. Dow Jones gained over 320 points in 2 days. Bond yields remained near 3.50%. US dollar index fell to 101.75. Globally, emerging markets saw strong inflows. Brazilian ‘Bovespa’ is up 10% since 1^st January.

Asian markets have opened on a mixed note. Chinese holidays are causing limited participation. Hang Seng resumed trading, after being up by 600 points yesterday. ASX & New Zealand indices are seeing gains. Japanese ‘Nikkei’ is trading mildly in the green.

Nifty saw its worst expiry of derivative contracts on Wednesday. The index recorded its biggest fall in over 2 months. American investment research firm, Hindenburg Research, brought out a strongly negative report on Adani group on the morning of 25th January. This report dampened sentiments. Bank Nifty saw huge writing of put options. This saw it tank by over 1000 points. Nifty fell over 225 points. Adani Port, SBI, IndusInd and HDFC Bank led the losers.

Technical View: Nifty is likely to find support at around 17750. 18350 is likely to act as resistance. Bank Nifty is likely to find support at around 41430. 42750 is likely to act as resistance on the upside.

Trading call:(1-14 days): BUY Tata Motor February future @ 419-423. Stop loss: 412.60 .Target: 430.

Derivative call-time period: (1 months): BUY RBL Bank February future @ 158-160. Stop loss: 155.80. Target: 163.