In this pre-market report, we have concentrated on the fact that the recent FOMC meeting where the Fed has raised the rate by 25 basis points and indicated likely pause going forward. The US markets are volatile due to the failure of regional banks and the debt ceiling issue. Asian markets are mixed, but the SGX Nifty indicates a 50-60 point gap down.
The Nifty is struggling around 18,100 and may open closer to 18,000. HDFC will be declaring results, and Apple will come out with results tomorrow. The May series is expected to be challenging, with a correction potentially taking the Nifty to 17,800.
Falling crude oil prices benefit India, but the government may not pass on the benefits to consumers, however we need not get demotivated as at least govt is getting benefitted and they can support crude price by passing subsidy when it goes beyond control.
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The Foreign institutional investors are buying aggressively, so the markets may try to bounce back from the lows. The focus should be on Reliance, HDFC, and HDFC Bank.
The global event is over but banking crises is unfolding daily as explained yesterday. Time to be careful and conservative in trading. If there is something you don't understand, pls refer to the comments of the last two days.
After a rally of 1300 points, a breather or some ( consolidation) or rest is imperative. Simple technical analysis states that let et the momentum cool off, let stocks change hands, traders and investors take things easy and then another fresh move starts. So, waiting would serve us well.
Nifty. Support is placed at 18050 and resistance at 18180.
BankNifty. Stronger Index. Support is placed at 43100 and resistance at 43500.
Evening Update
The Indian stock market had a stable and broad-based rally, showing no intraday volatility and moving higher with excellent performance, with the Bank Nifty leading the way. HDFC Bank hit a 52-week high, and non-IT stocks were doing better than expected. However, there are concerns about the market moving too high too soon, and it may not be able to continue going against the global trend for long.
There are uncertainties such as the Karnataka state election and the US debt ceiling issue. Corporate results have been good, and FIIS are buying for thousands of crores every day. Domestic institutions also bought for 441 crores. The hope is that time value will help the Bulls settle the market over the next few weeks. However, concerns remain, as the global markets are bleeding, and some US regional banks are down 40%, while others are down 20-40%.
HDFC pack always shine when FIIs buy and this was the reason for Hdfc bank doing well despite tanking of regional banks in USA.
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