Global and Domestic Markets
have often witnessed major reactions post US Federal meeting decisions. US Fed rate
decision announcement is due today at 11:30 PM (IST).
International
Market Outlook
If we look at the Asian
Indices, Japanese shares are lower today as Nikkei 225 is down by 0.76%.
European markets finished lower on Tuesday, CAC 40 was down at 0.75% while
Germany's DAX shedded off 0.56% and London's FTSE 100 was down by 0.56%.
Not much movement was seen on
Wall Street, the Dow ended up 0.13%, while the S&P 500 lost 0.18% and the
Nasdaq dropped 0.45%.
The impact of the falling Oil
prices, seen yesterday, across the bourses faded off. NYMEX Crude oil closed at
36.34, days low being 35.96.
As the view
goes, International
Markets
are evenly poised with S&P 500 futures hovering at 2025-2005 over the past
two trading sessions and DAX has formed a trading range of 10039 -9890. A big move
in either direction can be expected as it has been seen in the past US Fed Rate
decisions.
The US
Fed is expected to keep the interest rate on hold but the language of the Fed
whether dovish or hawkish in tone will lead the market directions. Crude oil
which has been a leading indicator has corrected from recent
high of 39.02 to last five days low of 35.96 which essentially means that crude
short term trend will change to sell if it goes further below 35.96.
Nifty at a
glance
Yesterday,
for the first time, NIFTY Futures saw a correction of 100 points from range
high of 7593 since the Union Budget on 29th February. The fall was brought
about by heavy selling in Pharma and IT companies. NSE Pharma Index fell from
recent high of 11800 to 11325 yesterday, a fall of 3.5 per cent. In today’s
morning trades SunPharma & Dr Reddy are among the Top Losers of NIFTY 50.
NSE IT Index
was also seen under performing in comparison to its benchmark NIFTY. Yesterday
NSE IT Index fell to its recent low of 10730 from its previous high of 11088
made on 4th March, which is a fall of 500 points approximately.
Small Cap
Index Outlook
Small Cap Index is struggling to trade
above 4850. Market is expected to remain
volatile with
immediate support is at 4675 and resistance is at 4850. US Fed rate
decision announcement today at 11:30 PM will also have ample impact on the
Small Cap Index.
In the last trading hour, yeasterday Small Cap Index was trading in a narrow range of 53 points.
Stocks that can be bought at correction:
Scrip
|
Sector
|
LTP
|
Fall
|
Post Budget Rise
|
LLOYDELENG
|
HOUSEHOLD
GOODS
|
205.95
|
-41%
|
16%
|
NOCIL
|
CHEMICALS
|
44.4
|
-32%
|
14%
|
HIMATSEIDE
|
TEXTILES
AND APPAREL
|
197.55
|
-30%
|
34%
|
GRANULES
|
PHARMACEUTICALS
|
118.45
|
-27%
|
12%
|
NILKAMAL
|
HOUSEHOLD
GOODS
|
1082.95
|
-23%
|
11%
|
TVTODAY
|
MEDIA
AND PUBLISHING
|
298.85
|
-10%
|
1%
|
·
% FALL is movement of
share from 4th Jan to 29th Feb
·
% RISE is movement of
share from 29th Feb to Last Trade Price
With the
inflation data being benign, the hopes of a rate cut have surged and banking
stocks have seen buying throughout yesterday. In today’s morning session, Bank
of Baroda and Kotak Bank are among the Top Nifty 50 gainers. NSE Bank Index
closed at 15350 near the range high of 15475 in the last trading hour, yesterday.
NIFTY is in a sideways range forming a cluster since past 7 trading days and
all Global markets are keenly watching the US Fed policy Statement tone, which
will lay the course of next interest rate hike in United States.
