Markets may see a mixed day today

17 Apr 2023 , 09:00 AM

Indian equity markets may see a mixed day today. Other Asian markets have opened on a mixed note today. IT stocks may see some movement today, after Infosys announced its results the other day. 

US markets saw a mixed last two trading days, last week. Thursday saw strong gains. Friday saw profit booking. Run up of big gains seen in the week saw some money taken of the table. Big corporate results are due this week. This could result in more volatility. Bond yield curve indicates to rate cuts in 2nd half of the year. This bodes well for equities.

Asian markets have opened mixed today. Japanese ‘Nikkei’ is trading flat. Most Asian indices are seeing consolidation after the gains of the last 2 weeks. Weakness in US dollar combined with narrowing of yield curve in the US 2- & 10-year bonds will see more money into Asian stocks. ETF flows get advantage of lower cost of money. A weaker US dollar also adds to the gains when other currency gains are translated into dollar. Results of companies will be the key determinant, going forward. Most large Cap stocks will come out with their results this week.

Nifty saw a day of gains for the 9th consecutive day, on Thursday. It rose from 17000 to 17800 in the last 9 sessions. Bank Nifty was the star of Thursday. It rose over 574 points. Weekly expiry of derivative contracts saw bears getting slaughtered. AU bank, IndusInd & Axis led the gainers, among banks. IndusInd, Eicher & HDFC Life also were the big gainers on Nifty. Profit booking was seen in IT stocks such as Infosys, HCL Tech & Tech Mahindra.

Technical View: Nifty is likely to find support at around 17700. 18000 is likely to act as resistance. Bank Nifty is likely to find support at around 41500. 42500 is likely to act as resistance on the upside.

Trading call:(1-14 days) Sell Infosys April future @1365-1375. Stop loss: 1397.4. Target: 1340.

Derivative call-time period: (1 months): BUY SAIL April future @ 81.5-82.  Stop loss :80.15. Target: 83.5.