Indian equity markets may see some profit booking today

15 Feb 2023 , 08:55 AM

Indian equity markets may see some profit booking today in stocks that gained yesterday. This short-term buying followed by profit booking is likely to continue for some time until the long- term economic scenario does not become clearer. US inflation rate in January stood at 6.4%. This was slightly above market expectations. 

US markets saw a volatile session yesterday. Dow Jones ended, down by 156.66 points. Nasdaq ended, up by 68.36 points. S&P 500 ended, down by 1.16 points. NYSE Composite ended, down by 27.13 points. Consumer price inflation in US stood at 6.4% in January. This was more than market expectations. Bond yields hit 3.73%. Oil prices saw a fall of over 2%.

Asian markets have opened in the red as a fallout of US volatility. This is causing minor losses on most indices. Asian markets are seeing consolidation today. Japanese ‘Nikkei’ is down by 30 points. Chinese stocks are seeing profit booking. Hang Seng is seeing weakness continue. Shanghai index is also trading lower for the 3rd day running.

Nifty saw a superb comeback yesterday before the CPI data in US. This happened on the back of short covering/value buying. The index closed higher by 158 points. Bank Nifty also saw strong pullback. It closed higher by 366 points. UPL, ITC and Reliance led the gainers. Adani twins also closed higher. The breadth was positive. Nifty next 100 closed higher by 0.72%.

Technical View: Nifty is likely to find support at around 17750. 18150 is likely to act as resistance. Bank Nifty is likely to find support at around 41100. 42300 is likely to act as resistance on the upside.

Trading call:(1-14 days) BUY Bajaj Auto February future @ 3870-3880. Stop loss: 3797.5. Target: 3955.

Derivative call-time period: (1 months) : Sell Grasim February future @ 1605-1615. Stop loss:  1642.15. Target: 1577 .