Markets may see some profit booking today

2 Mar 2023 , 08:42 AM

After the gains of yesterday, Indian markets may see some profit booking today. There is also the probability that the positive momentum seen yesterday, may continue today too. Asian equity markets have opened on a mixed note today.

US markets saw another volatile session yesterday.  Dow Jones closed, up by 5 points after intra-day swings of over 250 points. Nasdaq closed, lower by 76 points. Bond yields on 10 year US treasury bonds hit 3.99% – the highest this year. US dollar index remained lower, at near 104.5. Brent crude oil closed near US $84 per barrel.  

Asian markets have opened mixed after yesterday’s superb gains. Hang Seng is trading lower by 250 points after being up by over 800 points yesterday.  Chinese PMI data was the strongest in over 10 years. This saw buying in Chinese stocks. Metal stocks rallied. For today, expect some profit booking. But the undertone remains strong in favor of China reopening and the consumption rally.   

Nifty finally saw a day of gains yesterday. The index rebounded sharply to close up by 145 points. Bank Nifty was the outperformer. It gained over 470 points. Federal bank, PNB, Axis and  Bank of Baroda led the gainers. Adani Enterprises was up by another 10%. Hindalco, UPL and SBI also gained. Mid-caps also rallied. Breadth of the broader market was positive. 

Technical View: Nifty is likely to find support at around 17350. 17850 is likely to act as resistance. Bank Nifty is likely to find support at around 40100. 41300 is likely to act as resistance on the upside.

Trading call:(1-14 days) :BUY Gail March future @104-104.5. Stop loss: 102. Target:107.

Derivative call-time period: (1 months) :BUY Tata Motor March future @ 426-428. Stop loss: 418.45. Target:436 .