Indian equity markets may see further selling from Foreign Investors

12 Jan 2023 , 08:46 AM

Indian equity markets may see continued selling pressure from Foreign Investors, today. These investors seem to be booking profits and taking the money into Hang Seng and Chinese markets. Other foreign equity markets have also turned positive. This has further increased the investment options of foreign investors.

US markets saw another day of gains yesterday. Global markets get off to a superb start to 2023. European indices are seeing their best gains in over 10 months. Dow Jones closed higher by 269 points. Nasdaq continued its upward running streak for 3rd straight day, up by 189 points. Bond yields rose to 3.68%. US dollar edged lower to 103.
 
Asian markets have opened on a quiet note today.  Japanese 'Nikkei' is trading flat. Real gainers are the ASX & New Zealand indices. They are up by nearly 1%. Profit booking is being seen in South Korea & Hang Seng, after the superb run of the last few weeks. Chinese stocks continue to see ETF flows. Reopening is resulting in re-rating of Chinese stocks, in the near term.
 
Nifty saw another day of volatile trade yesterday. The index gyrated over 152 points, before closing down by 18 points.  Foreign investors sold in Indian markets, to invest in Chinese equity markets. Bank Nifty was the star with gains of over 225 points. PNB, IDFC First and HDFC Bank led the gainers. Nifty top gainers included Hindalco, BPCL and Sun Pharma. Bharti, Cipla and Divi's Lab lead the losers.

Technical View: Nifty is likely to find support at around 17850. 18400 is likely to act as resistance. Bank Nifty is likely to find support at around 41800. 42950 is likely to act as resistance on the upside.

Trading call:(1-14 days) : BUY Ultratech Cement January future @ 7025-7045. Stop loss: 6895. Target: 7175.

Derivative call-time period: (1 months) : BUY Jindal Steel January future @ 604-608. Stop loss: 593.90 . Target :618.