Indian markets may see a day in red today

14 Feb 2023 , 08:54 AM

Indian equity markets are likely to see a day in red today. Sentiments have been dampened by retail price inflation in January rising to 6.52%. The increase in inflation rate was driven by increase in food prices. The rise in inflation rate gives RBI a reason to go for another 25 basis point hike in April. The likelihood has increased that RBI will continue with its withdrawal of accommodation stance.

US markets saw superb comeback yesterday, before much awaited CPI numbers due today. Dow Jones closed higher by 376 points. Nasdaq closed higher by 173 points. Microsoft & other large cap tech stocks drove the markets higher. Bond yields fell to 3.69%. US dollar index also saw profit booking as money chased stocks. 

Asian markets have opened in the green today. Japanese ‘Nikkei’ ,which saw profit booking in early trade, is up by 150 points. South Korean & Taiwan markets are also trading higher as strong US cues see money chase equities. Most await US CPI numbers due today.

Nifty saw another volatile session yesterday. The index traded lower by over 138 points before closing down by 85 points. Selling took place in IT, metals & banking stocks. Bank Nifty was down by over 400 points, before closing lower by 277 points. Mid-caps also saw profit booking. Nifty next 50 was down by 1.77%. Adani group stocks saw selling continue. This hurt sentiment and dragged the broader markets lower.

Technical View: Nifty is likely to find support at around 17714. 18150 is likely to act as resistance. Bank Nifty is likely to find support at around 41100. 42300 is likely to act as resistance on the upside.

Trading call:(1-14 days): BUY REC Ltd February future @114-114.5. Stop loss: 111.95. Target: 116.5.

Derivative call-time period: (1 months): BUY INFY February future @ 1565-1575. Stop loss: 1538.65. Target: 1605.