Markets may see some profit booking today

6 Mar 2023 , 08:49 AM

Indian equity markets may see short term profit booking today, after the rally of Friday. US equity markets ended Friday on a strong, positive note. 

US markets saw a superb end to the week, on Friday. Dow Jones closed higher by 387 points. Nasdaq also rose over 225 points. Bond yields fell over 11 basis points to 3.95% .US dollar index fell to 104.5. The return of buying of equities is being seen.

Asian markets have opened in the green today, following global cues and the smart rally in US on Friday. European equities saw one of the best weeks, last week. Most major stock indices hit fresh new highs in Europe. Chinese stocks are seeing strong ETF flows. High PMI reading in February in China is causing a scramble to buy Chinese stocks.

Nifty saw a superb short covering/value buying rally on Friday. Adani group stocks led the gainers. The group sold over Rs15,500 crore of shares to a large foreign investor. Nifty closed higher by 272 points. It was up by over 330 points in intra-day trade. Bank Nifty was again the leader. It gained over 900 points. SBI, Bank of Baroda and PNB led the gainers among banking stocks. Adani twins, SBI and Bharti led the gainers on Nifty. Profit booking was seen in Tech Mahindra, Ultratech and Cipla.

Technical View: Nifty is likely to find support  at around 17450. 17850 is likely to act as resistance. Bank Nifty is likely to find support at around 40700. 41800 is likely to act as resistance on the upside.

Trading call:(1-14 days) BUY UPL March future @ 713-717. Stop loss: 700.7. Target :730. 

Derivative call-time period: (1 months): BUY Tata Power March future @ 209-210. Stop loss: 205.3. Target: 215.