Indian equity markets may start the day in Green

10 May 2023 , 09:01 AM

Indian equity markets may start the day in Green today. Markets ended on a flat note yesterday, after profit booking in the last two hours. Asian markets have opened on a mixed note today.

US markets saw another day of volatile trade yesterday. Dow Jones fell 55 points. Nasdaq fell 77 points. Investors booked profit before crucial CPI inflation number due today evening. Oil prices fell further. Bond yields traded near 3.50%. Airline stocks saw buying. Industrial stocks saw profit booking.

Asian markets have opened on a mixed note today. Japanese ‘Nikkei’ is trading lower after a superb day, yesterday. Most other markets are trading sideways. They are awaiting the CPI number. This CPI number is likely to dictate the Federal Reserve decision on rates in the near term .Weakness in US dollar is seeing ETF flows into Asian equities. These inflows could continue in the near term.

Nifty saw a superb start to a poor finish yesterday. Retail traders booked profits .Nifty 50 index scaled 18300 level to hit year highs, before closing flat, after being up by over 80 points in intraday trade. Bank Nifty saw profit booking. It was down by 85 points. PSU banks led the fall . SBI, PNB & Canara Bank led the losers among banks. Divi’s lab, IndusInd & Coal India led the gainers. UPL, SBI & ITC were the top losers on the index.

Technical View: Nifty is likely to find support at around 18150. 18500 is likely to act as resistance. Bank Nifty is likely to find support at around 43000. 43700 is likely to act as resistance on the upside.

Trading call:(1-14 days) : BUY HDFC AMC May future @ 1825-1835. Stop loss: 1794. Target: 1875.

Derivative call-time period: (1 months):  BUY Gujarat Gas May future @ 468-470. Stop loss: 459.6. Target: 480.