Indian equity markets may see some buying demand today

23 Feb 2023 , 08:54 AM

Indian equity markets may see some buying demand. The markets have fallen around 3.5% since the beginning of this year. This has lowered the valuations of many Indian stocks. In 2022, Indian stocks had become among the most expensive ones in the world. So the recent declines have made some stocks attractive for buying.

US markets saw another volatile session yesterday. Dow Jones closed lower by 84 points, after being up for almost the entire session. Higher bond yields and weak sentiment played out on US stocks. Nasdaq closed higher by 14 points. Earnings from Nvidia beat expectations, showing that the worst for semiconductors could be behind.

Asian markets have opened on mixed note today. Most indices are trading in the green. Volatility is hurting investors. Markets are pricing in higher yields and 25 basis points hike in March by the Federal Reserve. Chinese stocks could see some bounce as consumer demand hits pre covid highs, with spending boosting confidence of the market.

Nifty saw another extremely weak session yesterday.  Concerns over US stock markets’ fall on the previous day, higher yields, weak rupee and expiry of derivative contracts that will happen today, saw the index fall to near budget day lows. Nifty fell over 272 points. Bank Nifty fell 670 points. Adani Twins, Bajaj twins & Grasim led the losers. ITC and Bajaj Auto were the only gainers on the index. On Bank Nifty, all constituents were in the red.

Technical View: Nifty is likely to find support at around 17500. 18050 is likely to act as resistance. Bank Nifty is likely to find support at around 40000. 41000 is likely to act as resistance on the upside.

Trading call:(1-14 days) :BUY Reliance March future @ 2385-2395. Stop loss: 2342.3. Target: 2440.

Derivative call-time period: (1 months): BUY IndusInd Bank March future @ 1090-1100. Stop loss: 1073.25. Target: 1120.