Indian equity markets may start the day in green today

26 Apr 2023 , 08:57 AM

Indian equity markets may start the day in Green today. US markets ended the day in red yesterday. Weaker than expected corporate earnings by some US companies indicated to the extent of economic slowdown.

US markets saw correction yesterday. Fall in bond yields & pessimism regarding regional banks’ results saw Dow Jones falling by over 330 points. Nasdaq was already in profit booking mode and fell by 230 points. Market index futures, however, point strongly upwards. Microsoft and Alphabet’s earnings beat estimates. Microsoft’s stock price went up sharply in after-trading hours. WTI crude oil price touched $77 per barrel. Bond yields fell to 3-month lows @ 3.40%.

Asian markets have opened on a mixed note today. Japanese ‘Nikkei’ is trading lower by 120 points. Most other Asian indices were in correction mode yesterday, Today they are trading flat. Earnings surprise from Microsoft & Alphabet is causing return of money into IT stocks. Chinese stocks should also see bounce back today. Alibaba & Tencent’s stock prices can see sharp increase.

Nifty saw a day of volatility yesterday. The index hit 17800 before profit booking saw it close, up by 25 points. Adani Enterprises, Bajaj twins & IndusInd Bank led the gainers. Profit booking was seen in HDFC Life, HDFC Bank & UPL. Mid-caps bucked the trend and closed with gains. Nifty Next 50 was up by 0.40%.

Technical View: Nifty is likely to find support at around 17650. 17900 is likely to act as resistance. Bank Nifty is likely to find support at around 42400. 43200 is likely to act as resistance on the upside.

Trading call:(1-14 days) : BUY HDFC LIFE May future @ 532-535. Stop loss: 522.35.  Target: 546.

Derivative call-time period: (1 months) : BUY HDFC Bank May future @ 1655-1665. Stop loss: 1626.85. Target: 1700.