Markets likely to see another day in red today

30 Jan 2023 , 08:57 AM

Indian equity markets are likely to see another day in red today. Selling by foreign investors is likely to continue today. The negative sentiment created by Hindenburg report on Adani Group is likely to have its overhang today too.

US markets saw the best week in over 1 month. Dow Jones closed higher by 28 points, on Friday. Nasdaq continued its best run in over 6 months, closing higher by 108 points. Tesla gained over 17% in this week. Technology stocks led the pullback. Bond yields closed near 3.50%. US dollar remained near 101.8.

Asian markets have opened mixed today.  Japanese ‘Nikkei’ is seeing profit booking. It is trading flat. South Korean ‘Kospi’ is trading lower. Samsung’s earnings beat estimates. The star is the Taiwan market. It has reopened after one week of holidays and is trading higher by almost 3%. Chinese stocks will also resume trading today after a week with expectations that its stocks will do well.

Nifty saw another day of bloodletting on Friday.  Adani stocks got hammered as foreign investors turned big sellers. Tata Motors, Bajaj Auto led the gainers with stellar December quarter numbers. The Adani pack along with Banking stocks led the downslide. Nifty fell over 287 points. Bank Nifty fell 1300 points. Mid-caps also saw weakness. Collateral selling saw Nifty next 50 fall over 3.7%.

Technical View: Nifty is likely to find support at around 17550. 18050 is likely to act as resistance. Bank Nifty is likely to find support at around 40230. 41750 is likely to act as resistance on the upside.

Trading call:(1-14 days): BUY SBI February future @ 543-547. Stop loss: 534.10. Target: 556.

Derivative call-time period: (1 months): BUY ICICI Bank February future @ 822. Stop loss: 807.55. Target: 841.