Markets turned cautious on Wednesday to end lower ahead of Fed rate action and the Nifty managed to sustain above important Sep Series VWAP support of 17666 even during the closing session. On daily basis, the Nifty is still trading above the breakout line which increases the probability of a sharper up move towards an all-time high, and lower brent crude prices below USD 90 should further strengthen the bullish momentum in Indian markets.
After Fed comments on rising shelter costs, global markets have opened lower but falling brent crude prices which may lead to follow-up buying for Indian indices at lower levels.
Fed raises its main rate 75 bps, as anticipated, to a range of 3% to 3.25%. While Wednesday’s decision was unanimous, the dot plot shows a 10-9 majority in favor of hiking above 4.25% this year, suggesting a fourth straight 75 bps increase in November is possible. Policymakers expect rates will be cut in 2024, to about 3.9%, and to 2.9% in 2025.
Nifty 50 chart
Stocks to watch
Positive Read through
- Adani Transmission Aims to Become a Net-Zero Emitter by 2050.
- Ashoka Buildcon Gets a letter of acceptance for the Rs 2.58b project.
- Century Plyboards India Eyes Over USD 125M Capex Investment in 3 Years.
- Gujarat Industries Power Gives a contract for a substation to KEC International on an EPC basis.
- Reliance Industries Says CFO Agarwal plans to gift or sell 350,000 shares between May 10-Aug. 31 2023.
- HDFC Bank signs a multi-year data and technology deal with Refinitiv.
- Adani Group to Develop A $3 Billion Port in Eastern India.
- GNFC in focus- Fin Min approves continuation of anti-dumping duty on toluene-di-isocyanate.
- Arvind, Gokaldas- Weaker Rupee benefits, export contribution 51-100%.
- PB Fintech- invested Rs 650 cr in Policybazaar Ins brokers and Rs 250 cr in Paisabazaar Marketing.
Negative Read through
- Spicejet- DGCA continues to keep Co under enhanced surveillance.
- Ambuja Cement gets classified under ASM stage-1 and enters the F&P ban.
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