Stock markets rise as Federal Reserve hints at rate cuts
MUMBAI: Value markets closed higher on Thursday in response to positive cues from the United States Federal Reserve, indicating a significant bullish trend after the central bank signaled that it may scale back its aggressive campaign of subsidies. Will finish. Will offer a range of types and types of cuts. , which year came.
Nifty hit historic high of 21.210, indicating positive momentum given the accommodative stance of the Reserve Federal.
Sensex registered a rise and closed at 70.528.73 with a gain of 944.12 points. With this, Nifty fell by 264.40 points to 21.190.75.
Of the Nifty companies, 38 recorded gains, while 12 recorded a decline. Notable winners included Infosys, Tech Mahindra, LTIMindTree, Wipro and HCL Technologies, while Power Grid, HDFC Life, Nestle India, Cipla and JSW Steel suffered losses.
Varun Agarwal, Founder and Director General of Profit Idea, said: “The Federal Reserve has projected three interest rate cuts in 2024, while the Fed has kept all interest rates unchanged (in line with expectations). Dow Jones suffered maximum losses. The historic surge closed more than 500 points above 37,000, while the S&P 500 fell 1.5 percent to close above the 7,000 level, its highest level in two years. Asia joins global review of stocks and bonds. “Signs “That the Federal Reserve will cut rates next year, coupled with reviving inflation and a decline in inflation is bullish across all markets.”
The Federal Reserve’s forecast of three interest rate cuts in 2024 and its decision to keep interest rates unchanged were well received by the market.
The Dow Jones hit a historic high, surpassing the 37,000 mark, while the S&P 500 fell 1,5 percent to close above the 7,000 level, its highest level in two years.
The positive sentiment extended globally and added to a surge in stocks and bonds in Asia ahead of signs the Federal Reserve may implement rate cuts next year.
Aggarwal said: “Fall in petroleum price, consistent buying interest from FIIs, solid microdata and expectation that RBI will reduce interest rates next year will be positive for the market sentiment. Immediate support at 20769, while resistance lies at 21410. Now we need to hold above 20850 zone to move towards 21410. We are close to the suggested target for 21234-21410.
Various factors contributed to the bullish sentiment in the market, including falling oil prices, continued buying interest from foreign institutional investors (FIIs), strong microdata and expectations of a rate cut by the Banco de Reserve. of India (RBI) in the next year.
Immediate support for Nifty was identified at 20.769 and resistance at 21.410. To maintain the upward momentum towards 21.410, it is necessary to hold above the 20.850 area.
Nifty Daily is at 84, Mid-cap Nifty is at 85, Bank Nifty is at 78 and Sensex is at 80. Todo suggests that you should remain cautious in the short term. It would be good to continue recording some profits or maintain the trailing stop loss. “A healthy recovery is good in the medium and long term”.
Despite the strong bullish impulse, caution is advised in the short term, as indicators show overbought signals.
Which indicates the need for prudence in the short term.
Analysts recommend booking some profits or employing trailing stop losses, as a healthy correction could be beneficial in the medium and long term.
Market vision for sectors such as petrochemicals, information technology, consumer goods, communication media, metals and banking.
The angle remains positive. Although the bullish impulse is clear, it advises caution in the short term and encourages investors to keep an eye on trailing stop losses.
Despite the surge in the index, many small and medium capitalization stocks are available at attractive discounts. This is encouraging investors to take advantage of this golden opportunity, as India remains an access point for investment with investment from foreign institutional investors (FII) and domestic (DII) funds.
The broader time frame remains bullish for Nifty and is recommended for investors looking for reversal signals to avoid potential traps by focusing on index values. Market is expected to rise
