Indian equity markets may start the day in Green today

13 Jan 2023 , 09:05 AM

Indian equity markets may start the day in Green today.  Retail inflation in India in December slowed down to 5.72% from 5.88% in November. In US Consumer Price Inflation in December stood at 6.5%. 

US markets ended the day in green yesterday. Dow Jones closed, up by 216.96 points. Nasdaq closed, up by 69.43 points. NYSE Index closed, up by 110.46 points. S&P 500 closed, up by 13.56 points. CPI number for December has in line with estimates @ 6.5%. This saw US dollar hit 6 month lows @ 102.2.  Bond yield slid to hit 3.44%
 
Asian markets have opened on a mixed note today.  Japanese ‘Nikkei’ is seeing weakness. Strength in  ‘Yen’ is putting pressure on export related stocks.  South Korean market continues to move upwards. It has gained around 12% gains in the last 7 sessions. Chinese stocks are reacting positively to reopening and US dollar weakness. ETF flows are increasing in Chinese stocks.
 
Nifty saw another day of volatility yesterday. The index slipped over 134 points, before last-hour recovery saw it close, down by 37 points. Bank Nifty was more volatile. It slipped nearly 500 points before closing lower by 150 points. HCL Technologies, Ultratech and SBI Life led the gainers. Divi’s Lab, Reliance and BPCL led the losers. Midcaps bucked the trend. Nifty Next 50 closed higher by 0.21%.

Technical View: Nifty is likely to find support at around 17750. 18400 is likely to act as resistance. Bank Nifty is likely to find support at around 41800. 42950 is likely to act as resistance on the upside.

Trading call:(1-14 days): BUY NTPC January future @ 166.5-167.5. Stop loss: 163.65. Target :171.

Derivative call-time period: (1 months): BUY Ashok Leyland January future @147-148.5. Stop loss :144.9. Target: 151.