GIFT Nifty up 150 points; here's the trading setup for today's session
Markets are expected to remain in consolidation mode due to several events and would keenly track on the US Fed commentary which would provide direction on its future rate action," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal.
Equity markets traded in a range on Wednesday and closed with marginal gains. In today's trade, markets will react to the outcome, where it has kept the key rates unchanged but hinted at three rate cuts in 2024.Markets are expected to remain in consolidation mode due to several events and would keenly track on the US Fed commentary which would provide direction on its future rate action," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal.
Here's breaking down the actions:
STATE OF THE MARKETS
(Earlier SGX Nifty) signals a positive start
GIFT Nifty on the NSE IX traded higher by 154 points, or 0.70 per cent, at 22,079, signaling that Dalal Street was headed for positive start on Thursday.
- Tech View: Minor degree positive chart patterns like higher tops and bottoms have been negated recently as per daily chart. Hence, any upside bounce from here is expected to be a lower top formation in the short term, Nagaraj Shetti of HDFC Securities said.
- India VIX: India VIX, which is a measure of the fear in the markets, fell 4.5% to settle at 13.47 levels.
gain
Wall Street's main stock indexes closed higher on Wednesday after the Federal Reserve eased investor jitters by keeping borrowing costs unchanged and reinforcing expectations that rates could be cut as many as three times this year.
- Dow up 1.03%,
- S&P rises 0.89%,
- Nasdaq gains 1.25%
Asian stock up
Asian equities rallied Thursday after US stocks touched fresh highs as the Federal Reserve indicated it would meet market expectations with three rate cuts this year.
- S&P 500 futures rose 0.3% as of 9:07 a.m. Tokyo time
- Hang Seng futures rose 0.8%
- Japan’s Topix rose 1.4%
- Australia’s S&P/ASX 200 rose 0.7%
- Euro Stoxx 50 futures were little changed
Dollar slips
The dollar fell broadly on Thursday after the U.S. Federal Reserve maintained its interest rate cut projections for the year in the face of upside surprises on inflation, and did not strike a more hawkish tone as some investors had feared.
FII/DII action
Foreign portfolio investors were net sellers at Rs 2,599 crore on Wednesday. DIIs, meanwhile, bought shares worth Rs 2,667 crore.
Rupee
Falling for the eighth straight session, the rupee declined 16 paise to close at over two-month low of 83.19 against the US dollar on Wednesday, weighed down by a strong American currency against major rivals overseas and elevated crude oil prices.
FII data
The net short of FIIs increased from Rs 85,359 crore on Tuesday to Rs 95,224 crore on Wednesday.
US Fed Outcome
The Federal Reserve held interest rates steady, but policymakers indicated they still expect to reduce them by three-quarters of a percentage point by the end of 2024 despite stodgier expected progress towards the US central bank's 2% inflation target.
Source: Stocks-Markets-Economic Times
