Indian equity markets may see another day of uncertainty

20 Apr 2023 , 09:02 AM

Indian equity markets may see another day of uncertainty today. Global cues are mixed today. HCL Technology will declare its March quarter results today. This may have an impact on IT stocks. Morgan Stanley’s profit in the March quarter came down y-o-y by 19%. UK’s inflation rate in March stood at 10.1%.

US markets saw another volatile session yesterday. Netflix’s results saw some disappointment in terms of new subscribers added. Tesla’s March quarter profit came down y-o-y by 24%. This decline happened because of a number of price cuts that the company implemented during the past one year. This in turn resulted in further price correction in its stock. Dow Jones closed, down by 79 points. Energy stocks dragged the index lower due to sharp sell-off in crude oil. Nasdaq closed flat, up by 4 points. Markets expect weakness in US dollar to be beneficial for US tech companies.  

Asian markets have opened on a mixed note today. Japanese ‘Nikkei’ is trading flat . ASX & South Korean markets are seeing gains. Auto stocks are rebounding on strong earnings. Chinese stocks will respond to growth numbers beating expectations. Metal stocks are also leading the gainers.

 Nifty saw a day of correction for another day, yesterday. IT stocks continued to be under pressure. Infosys, HCL Tech and Wipro saw further selling. Nifty ended lower by 41 points. Bank Nifty also lost 110 points. Metal stocks were the star for the day with gains across the board. A weaker US dollar can increase demand for metals in international markets as they become cheaper in dollar price terms. BPCL, Divi’s Lab & Bajaj Auto led the gainers. HCl Tech, IndusInd bank and Infosys led the losers.

Technical View: Nifty is likely to find support at around 17550. 18000 is likely to act as resistance. Bank Nifty is likely to find support at around 42000. 42900 is likely to act as resistance on the upside.

Trading call:(1-14 days): BUY NTPC April future @ 167-168. Stop loss: 164.15. Target: 171.

Derivative call-time period: (1 months): BUY HCL Tech April future @ 1035-1040. Stop loss :1017.25. Target: 1060.