Indian equity markets may see some profit booking today

2 May 2023 , 08:57 AM

Indian equity markets may see some profit booking today. Most Asian markets are trading flat today. Corporate results will have a strong impact on the course of market movement today.

US markets saw a superb rally over the last 4 days. Dow Jones gained nearly 1000 points in this period. Profit booking finally took place yesterday. This saw the index close lower by 40 points, after hitting 34250 points. Nasdaq gained over 450 points. Results of large cap IT companies caused huge buying interest in their stocks. JP Morgan bought First Republic Bank’s deposits and assets after the regulators shut the bank down. This is the third bank failure in US in 2 months. 

Asian markets have opened in the green today.  Japanese ‘Nikkei’, South Korean Kospi & the Taiwan market are seen good gains for the last two days. The undertone remains bullish. All eyes are on the Federal Reserve policy meeting tomorrow. A 25 basis point rate hike is being factored in by the markets.

Nifty saw another day of superb gains on Friday. It crossed the 18000 level with ease. Adani Twins, Nestle & Wipro led the gainers. Bank Nifty also scaled 43000 level with ease. IDFC Bank, PNB & SBI led the gainers. Nifty Next 50 climbed over 1.40%. Market breadth was positive. Mid-cap stocks led the gainers.

Technical View: Nifty is likely to find support at around 17850. 18350 is likely to act as resistance. Bank Nifty is likely to find support at around 42900. 43900 is likely to act as resistance on the upside.

Trading call:(1-14 days) : BUY IRCTC May future @ 619-623. Stop loss: 608.60. Target: 635.

Derivative call-time period: (1 months): BUY Container Corporation May future @ 613-616. Stop loss: 602. Target: 628.