Invest wise with Expert advice

Indian equity markets may see another day in red today

10 Mar 2023 , 08:46 AM

Indian equity markets may see another day in red today. Global cues from foreign equity markets are negative today. Foreign Portfolio investors were net sellers yesterday in Indian equity markets.

US markets saw another day in red yesterday. Dow Jones closed lower by 543.13 points. Nasdaq closed lower by 237.65 points. S&P 500 closed lower by 73.69 points. NYSE Composite closed lower by 299.85 points. In the week ending on March 4^th, jobless claims in United States increased by 21,000 to 211,000. This is much higher than expectations. Bond yields fell sharply by almost 12 basis points to 3.87%. Oil prices remained under pressure, trading near US$ 81 per barrel.

Asian markets have opened in the red today, led by the sell-off in the US markets. US markets have become most oversold in over 3 months. Japanese ‘Nikkei’, which saw a strong week, has succumbed today to profit booking. It is trading down by 300 points. Weekend blues are also causing most Asian markets to trade lower. Chinese stocks are also seeing initial weakness. But they could see buying as data suggests strong retail demand in China. This in turn could drive growth.

Nifty saw a day of weakness, after 3 days of outperformance, yesterday. It got sold off in anticipation of weak US economic data. This saw the index close lower by 165 points. Bank Nifty closed lower by 320 points. Reliance, Adani twins and M&M led the sell-off. Tata Steel, L&T and Apollo Hospitals led the gainers. Mid-cap index also succumbed to profit booking. Nifty Next 50 closing lower by 0.93%.

Technical View: Nifty is likely to find support at around 17450. 17850 is likely to act as resistance. Bank Nifty is likely to find support at around 41000. 42000 is likely to act as resistance on the upside.

Trading call:(1-14 days): Sell ICICI Bank March future @ 858-862. Stop loss: 877.2. Target: 843.

Derivative call-time period: (1 months) BUY Hindustan Petroleum March future @ 225-227. Stop loss: 221.5. Target: 231.