Indian benchmark indices remained volatile through the session on Wednesday but managed to close marginally higher. The markets will today react to the US Fed decision. Analysts say the ongoing consolidation for Nifty around the 61.8% retracement zone of the immediate swing (22,182–24,774) indicates a potential base formation at lower levels. Despite the recent stabilization, the index has not yet formed a Higher High–Higher Low structure, keeping the broader sentiment cautious.
STATE OF THE MARKETS
GIFT Nifty on the NSE IX traded lower by 34.5 points, or 0.15 per cent, at 23,232.5, signaling that Dalal Street was headed for a negative start on Thursday.
Tech View: The RSI is in the deep oversold zone; however, this does not automatically signal a recovery, though a potential recovery may be around the corner. A decisive move above 23,300 might lead to a recovery towards 23,500 and higher. On the lower end, the downside may resume below 23,200.
India VIX: India VIX, which is a measure of the fear in the markets, was rose 2% to settle at 13.17.
Asian shares mixed
Asian stocks swung between small gains and losses, while equity-index futures for the S&P 500 Index and the Nasdaq 100 Index climbed over 0.5%. Earlier, Wall Street traders drove stocks to the lowest since July on bets the Fed will keep raising rates to combat inflation.
- S&P 500 futures rose 0.5% as of 9:55 a.m. Tokyo time
- Hang Seng futures fell 1.2%
- Japan’s Topix rose 0.7%
- Australia’s S&P/ASX 200 rose 0.3%
- Euro Stoxx 50 futures rose 0.4%
US stocks slip
US stocks slipped Wednesday after the Federal Reserve hiked its main interest rate for the first time in three years and suggested more may be ahead as it tries to get the nation’s high inflation under control.
The S&P 500 fell 0.4% after giving up a modest gain from earlier in the day. The Dow Jones Industrial Average dropped 631 points, or 1.2%, and the Nasdaq composite was nearly unchanged after edging down by less than 0.1%.
Oil prices decline
Oil prices fell in early trade on Thursday, extending the previous day's losses, as reports of Saudi Arabia offering extra crude cargoes through Oman reduced fears of supply disruptions in the Middle East.
Gold ticks up
Gold prices nudged higher on Thursday after hitting a near six-week low in the previous session, as investors assessed the U.S. Federal Reserve's interest-rate increase and its signal that further tightening may follow.
Dollar holds seven-week high
The dollar clung to a seven-week high on Thursday after the Federal Reserve raised interest rates and flagged more hikes in coming months, while investors awaited decisions from the Bank of England later and the Bank of Japan on Friday.
Read more: Ahead of Market: 10 things that will decide stock market action on Thursday
Stocks in F&O ban today
1) SAIL
2) Manappuram
3) Inox Wind
4) Kaynes
5) Bandhan Bank
Securities in the ban period under the F&O segment include companies in which the security has crossed 95% of the market-wide position limit.
Read more: Rupee languishes at six-week low ahead of Fed outcome, RBI limits losses
Rupee
The rupee stayed weak for the seventh consecutive session, declining 7 paise to 95.95 against the US dollar on Wednesday, tracking a strong greenback overseas and foreign fund outflows.
Disclosure: This article has been written by Podishetti Akash, who is not a SEBI-registered Research Analyst or an Investment Adviser. Podishetti Akash and her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment.
