Indian equity markets may start the day in Green

12 May 2023 , 08:58 AM

Indian equity markets are likely to start the day in Green today. It may turn out to be a mixed day, with some volatility. Bank of England has raised interest rate by 0.25% to 4.5%. This is the highest interest rate in the country since 2008. 

US markets saw a volatile day yesterday. Weaker than expected results from Disney saw sell off. Disney’s stock price closed, down by 8%. Stocks of Intel & Caterpillar also saw selling. Dow Jones fell over 400 points in intra-day, before closing down by 220 points. Nasdaq saw buying in technology stocks. It closed higher by 22 points. Bond yields hit 5 month lows to touch near 3.37%.

Asian markets have opened on a mixed note today. Japanese ‘Nikkei’ is trading in the green after 2 days of profit booking. US dollar is seeing some recovery. Most other Asian indices are trading mixed. Stock specific buying in IT hardware stocks is being seen in Taiwan & South Korea. Chinese stocks are seeing profit booking. Many foreign investors are booking profits in China and shifting to India.

Nifty saw another volatile day yesterday. Nifty hit new yearly highs before profit booking in L&T & Dr Reddy’s dragged the index lower to close flat. Bank Nifty led the gainers. It closed higher by 145 points. Adani twins, Asian Paints & HUL led the gainers. L&T, DR Reddy’s & Hindalco led the losers. Mid-caps saw buying interest Nifty Mid-cap 100 index closed higher by 0.50%.

Technical View: Nifty is likely to find support at around 18250. 18500 is likely to act as resistance. Bank Nifty is likely to find support at around 43000. 43900 is likely to act as resistance on the upside.

Trading call:(1-14 days) :BUY Escorts May future @ 2060-2080. Stop loss: 2028.65 . Target: 2115.

Derivative call-time period: (1 months): Sell Infosys May future @ 1265-1275. Stop loss: 1189.1. Target:1240.