On the back of positive global cues, Indian equity markets are likely to start the day in Green

18 May 2023 , 09:02 AM

Global cues are very positive today for Indian equity markets. US markets closed strongly in the Green yesterday. Asian markets have opened in the Green today. Japanese Nikkei is on a high as the Japanese economy came out of recession in  the March quarter.

US markets saw a superb comeback yesterday. From being oversold, Dow Jones rallied by over 400 points. Nasdaq continued its winning streak, up by over 155 points. Oil prices increased too. Brent hit US$76 per barrel. Bond yields hit 3.55%. US dollar index gained marginally to close near 102.8.

Asian markets have opened in the green today. This is led by the Japanese 'Nikkei' . It is trading at fresh 1-year highs, crossing the 30,000 mark. The Nikkei is seeing the best run in over 24 months. Most other Asian indices are trading near 3-month highs. Taiwan & South Korea are also seeing huge interest in equities.

Nifty saw a day of profit booking yesterday for the 2nd straight day. Local mutual funds have been sellers in the last 5 days. Foreign buyers continue to increase their stakes in Indian equities. Kotak bank, SBI Life & Apollo Hospital led the losers. Hero Moto, IndusInd Bank & ITC led the gainers. Mid-caps also saw profit booking with across the board selling in high beta stocks.

Technical View: Nifty is likely to find support at around 18150. 18450 is likely to act as resistance. Bank Nifty is likely to find support at around 43500. 44300 is likely to act as resistance on the upside.

Trading call:(1-14 days) : BUY Kotak Bank May future @1910-15. Stop loss: 1873.7. Target: 1951.

Derivative call-time period: (1 months): BUY SBI Life May futures @1160-70. Stop loss :1141.75. Target : 1190.