Indian equity markets may see some selling pressure today

29 Dec 2022 , 08:53 AM

Indian equity markets may see some selling pressure today. Global cues from foreign equity markets are negative today. US markets closed in the red yesterday, after sharp declines in many technology stocks. Apple’s stock price fell by more than 3% yesterday. Technology stocks may see some selling pressure in Indian equity markets too, today.

US markets saw another weak day yesterday. Rise in yields saw broader market sell off to continue.  Weakness in technology stocks did collateral damage to broader markets. Dow Jones fell 360 points. Nasdaq fell 139 points. Bond yields closed near 3.86%. Oil fell to US$ 79 per barrel.

 Asian markets have opened in the red. Trading volumes are lower due to the holiday season.  Japanese ‘Nikkei’ is down by over 300 points even as Bank of Japan action sees ‘Yen’ get stronger. South Korea and Taiwan are the other indices trading in the red as technology stocks globally take a hit. Chinese stocks may see contrarian buying as reopening of economic activity could see stocks do well.  

 Nifty saw profit booking in the 2nd half. After 2 days of strong rally there was some consolidation in the 2nd half, with weekly expiry of derivative contracts today. Nifty was range bound within 100 points. Bank Nifty also closed almost flat. Broader markets did much better with Nifty Next 50 closing in the green, up by 0.39%. Titan, M&M and Power Grid led the gainers. Bharti, Apollo Hospital and Bajaj FinServ saw profit booking. 

Technical View: Nifty is likely to find support at around 17900. 18400 is likely to act as resistance. Bank Nifty is likely to find support at around 42000. 43050 is likely to act as resistance on the upside.

Trading call:(1-14 days) : BUY Ultratech January future @ 7085-7100. Stop loss: 6951. Target: 7235. 

Derivative call-time period: (1 months) :Sell Bharti December future @ 803-807, stop loss 821 & target 789.