While traders are booking profits at higher levels, the expectation of dovish comments from the US Fed and Bank of England in the upcoming policy meetings this week is supporting the optimism, analysts say.
Within the bluechip Nifty pack, Power Grid, Tata Consumer, Coal India and Axis Bank were trading down around 1% while stocks like Asian Paints, Maruti Suzuki and ICICI Bank saw buying momentum. Sectorally, buying was seen in FMCG, media, metal and pharma stocks while PSU banks and real estate stocks were under selling pressure.
During the day, stocks like Maruti Suzuki, M&M, Coal India, Adani Power, Tata Steel, Ambuja Cements, Bank of Baroda, BHEL, Godrej Properties, Mankind and Tata Investment would be under the radar as their Q1 results are expected today.
Experts View
“The global cues are likely to be supportive on expectations of a rate cut from the Fed in September. The Fed commentary expected tonight is likely to indicate the possibility of rate cut in September,” said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
“It is time for investors to take a long-term call on the market and moderate their expectations to realistic levels. At this juncture in the market safety is important. Chasing super normal returns from the broader market would be a risky game,” Vijayakumar suggested.
Deven Mehata, Research Analyst at Choice Broking, said, “Nifty can find support at 24,800 followed by 24,750 and 24,700. On the higher side, 24,900 can be an immediate resistance, followed by 25,000 and 25,100.”
Global Markets
Asian stocks clung to familiar ranges on Wednesday after contrasting results from tech bellwether Microsoft and chipmaker AMD suggested a divide in the AI landscape while the yen was firm ahead of the Bank of Japan’s policy decision.
MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.23% higher but on course for a 1.2% decline for the month, snapping a five-month winning streak.
Japan’s Nikkei fell 1% in early trading, on course for a 3.7% decline in July, weighed by the yen’s ascent.
FII/DII Tracker
The foreign institutional investors (FIIs) extended their selling as they sold equities worth Rs 5,598 crore on Tuesday, while domestic institutional investors bought equities worth Rs 5,565 crore on the same day.
Crude Oil
Oil futures clawed back some losses on Wednesday, recovering from 7-week lows as geopolitical tensions rose after Israel retaliated against an attack by Hezbollah, although prices remained under pressure from concerns about demand in China.
Brent crude’s more active futures October contract was at $79.27, up $1.2. U.S. West Texas Intermediate crude futures rose $1.18, or 1.6%, to $75.93 a barrel. Both Brent and WTI fell about 1.4% on Tuesday, closing at their lowest levels in seven weeks.
Currency Watch
The Indian rupee opened flat at 83.73 against the US dollar in early trade. The dollar index, which tracks the movement of the greenback against a basket of six major world currencies, declined 0.15% to 104.39 level.
(With inputs from agencies)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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