Indian equity markets may see another day in red today

1 Mar 2023 , 09:01 AM

Indian equity markets may see another day in red today. India’s GDP growth in December quarter stood at 4.4%. This is lower than expectations. Chinese stocks continue to attract foreign investors. Hang Seng Index is up by more than 3% today. This is causing competition for Indian equity markets, when it comes to attracting foreign investors’ money.

US markets saw another weak session yesterday. This was the worst February in over 2 years for US equity markets. Dow Jones closed near the lows of the year, down by 232 points. Nasdaq closed flat. Bond yields closed near 3.94%.The markets are pricing in the worst on interest rates. A lot of data still needs to come before the Federal Reserve meeting on 24th March. 

Asian markets have opened mixed. Most indices are trading flat to mildly positive as they price in the weak US cues. Japanese ‘Nikkei’ is trading down by 40 points. South Korea and ASX markets are trading in the green. Chinese stocks may react positively today. Hang Seng saw consolidation in February. It could see some upside this month.

Nifty saw another day of weakness yesterday. Continued selling from foreign investors saw index based selling pressure for the 4^th consecutive day. This has caused Indian indices to see 8th consecutive day of losses. Cipla, Dr Reddy, Reliance and ONGC led the losers. Adani twins were on the gainers list along with Britannia and Asian Paints. Mid-caps saw strong outperformance. Nifty Mid-cap 100 index closed up by 0.74%.

Technical View: Nifty is likely to find support at around 17250. 17850 is likely to act as resistance. Bank Nifty is likely to find support at around 39800. 41000 is likely to act as resistance on the upside.

Trading call:(1-14 days) : BUY ONGC March future @ 152.5-153.5. Stop loss: 149.90. Target: 156.5.

Derivative call-time period: (1 months) : BUY  IDFC First bank March future @ 54.75-55.25. Stop loss: 53.9. Target: 56.25.