Indian stock market today: Global equities witnessed a strong rebound after the US Fed meeting, which signaled a willingness to go for a rate cut once there is an ease in the inflation concerns. On Dalal Street, the frontline Indian indices and broad market witnessed buying interest during morning deals, which are still underway. However, the Nifty 50 index is somehow not able to breach above 22,700 levels, which may put doubt into the bulls’ minds. So, at this juncture, one may think whether the Nifty 50 index will touch 23,000 this week or we will have to wait for some time.
Cue from US Fed meeting outcome
Decoding the US Fed meeting’s impact on the Indian stock market, Sugandha Sachdeva, Founder of SS WealthStreet said, “As the US Fed has hinted at a willingness to cut interest rates despite sticky inflation, it may initially boost stock prices. Lower interest rates tend to be positive for stocks as they can stimulate economic activity and corporate profits. However, the central bank has maintained a cautious stance. While there are indications of a cooling inflationary environment, the Fed has emphasized the need for greater confidence that inflation will reach the targeted 2 percent level before initiating any rate cuts.”
“This cautious approach reflects the central bank’s commitment to ensuring stability in the economy and the financial markets. In essence, while the possibility of monetary easing remains on the horizon, the Fed’s insistence on building confidence in inflation reaching its target underscores the importance of data-driven decision-making and the careful calibration of monetary policy to support long-term economic growth and stability,” Sugandha added.
Outlook for the Nifty 50 index
Speaking on the outlook for Nifty today, Sumeet Bagadia, Executive Director at Choice Broking said, “During Thursday deals, the Nifty 50 index has tried thrice to breach the 22,700 hurdle and it is once again close to the 22,700 mark. Once the Nifty breaches this hurdle today, and closes above the 22,700 mark, then we can expect a fresh upside in the 50-stock index.”
Bagadia said that the Nifty 50 index may soon touch the 23,000 level, once the 50-stock index gives a fresh breakout above 22,800 on a closing basis or sustains above this hurdle for a few hours.
However, Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi said, “The Nifty 50 index is signaling overbought condition on technical chart. So, we may see profit booking if the 50-stock index fails to breach above 22,700 mark. However, the index will be facing a hurdle at 22,800 as well. So, the 50-stock index needs to breach the 22,800 hurdle decisively. This will ensure that the Nifty 50 index may climb 23,000 levels in the near term.”
Stocks in focus
Advising stock market investors to remain vigilant about Nifty 50 heavyweights, Saurabh Jain, Vice President — Research at SMC Global Securities said, “For keeping the market mood intact, shares of Reliance Industries Limited (RIL), HDFC Bank, Infosys, Tata Consultancy Services (TCS), ICICI Bank, and Kotak Mahindra Bank hold the key. The market can’t afford any dip in these frontline Nifty 50 stocks in the near term if there is no appreciation in these stocks. These Nifty 50 stocks hold around 35 percent weight in the 50-stock index and any dip in these shares may turn the tide in favour of bears. So, it is important for these shares to at least hold their ground to provide sentimental support to Dalal Street bulls.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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Published: 02 May 2024, 12:40 PM IST