Indian equity markets may start the day in Green today

8 Feb 2023 , 08:50 AM

Indian equity markets may start the day in Green today. RBI will announce its interest rate decision today. The expectation is that it will go for a 25-basis point hike. If RBI goes for a lesser hike than this, then it will be a positive surprise for markets. If it announces a hike that is more than 25 basis points, then it will be a negative surprise for equity markets. 

US markets saw superb pullback yesterday. Federal Reserve Chairman reiterated that inflation is easing down. Dow Jones rose 265 points. Nasdaq gained 226 points. US dollar index softened to 103.3.  

Asian markets have opened on a mixed note today. South Korean & Taiwan indices are in the green.  Japanese ‘Nikkei’ is seeing profit booking. It is trading lower by 170 points. Chinese stocks are seeing consolidation after the big run up in January. Other Asian indices are seeing ETF flows as money chases stocks. 

Nifty saw another bout of profit booking yesterday. Foreign investors continued their selling as ETF outflows dampened sentiments. Nifty closed lower by 43 points. Bank Nifty closed higher by 116 points.  Adani twins led the gainers on short covering/value buying. Dr Reddy’s & Kotak bank were also among the gainers. Profit booking was seen in Tata Steel, Hindalco and ITC. Mid-caps saw mixed trade. Nifty Next 50 closed lower by 0,16%.

Technical View: Nifty is likely to find support at around 17650. 18150 is likely to act as resistance. Bank Nifty is likely to find support at around 41000. 41900 is likely to act as resistance on the upside.

Trading call:(1-14 days) : BUY SBI February future @ 546-550. Stop loss: 537.75. Target: 560.