Last Updated: March 21, 2024, 11:31 IST
Domestic benchmarks Nifty 50 and Sensex opened within the inexperienced on March 21, with the NSE index reclaiming the 22,000 degree, monitoring sturdy world cues because the Federal Reserve gave the projection of three price cuts this yr.
Sensex rallied over 750 factors and Nifty jumped 1 per cent on Thursday as shopping for was seen throughout all sectors.
Nifty Auto, Bank Nifty and Nifty IT – three sectoral indices which can be extremely delicate to rate of interest choices – had been buying and selling greater by over a per cent every.
Why Market is Rising Today?
Fed Decision
Fed Chair Jerome Powell mentioned that current sizzling inflation readings had not modified the underlying story of slowly easing value pressures and reiterated the central financial institution’s earlier forecast of sentimental touchdown for the world’s largest financial system.
The feedback aided expectations of a price reduce in June, the chances of which rose to 77 per cent from 59 per cent a day in the past, in line with the CME’s FedWatch Tool.
Fed Chair Jerome Powell informed reporters sticky inflation stories present value pressures however “haven’t really changed the overall story, which is that of inflation moving down gradually”.
Decline in US treasury yields
US Treasury yields fell barely in New York commerce and had been regular in Asia. Two-year yields had been final at 4.59 per cent and 10-yr yields at 4.26 per cent.
Buying at decrease ranges
After experiencing a correction of almost 3 per cent final week, traders responded by participating in shopping for exercise at decrease ranges. The Nifty reached a 52-week excessive of twenty-two,526 on March 11, with the Nifty degree standing at 21,839 the day gone by.
Global Markets Cheer
The world fairness markets cheered the Federal Reserve’s determination to maintain the important thing lending price unchanged at 5.25 – 5.5 per cent. Additionally, the Fed indicated it is going to reduce the rate of interest thrice in the course of the present calendar yr.
Wall Street’s three main indices hit file closing highs. Dow Jones gained 1.03 p.c, S&P 500 jumped 0.89 per cent and the Nasdaq Composite surged 1.25 per cent.
Japan’s Nikkei went up 1.5 per cent to a contemporary peak over 40,000 in early commerce. MSCI’s broadest index of Asia-Pacific shares exterior Japan jumped 1.6 per cent.
Nifty Technicals
The Nifty shifted right into a consolidation motion amid volatility on March 20 and closed the day greater by 21 factors. It later shifted right into a unstable up and down swing motion for the day and at last closed with minor features.
“The near-term trend in the Nifty remains weak. Further up-move from here could find strong overhead resistance around 22,150-22,200 levels in the next few sessions and this is likely to be a sell-on-rise opportunity. Immediate support is at 21,700,” mentioned Nagaraj Shetti, senior technical analysis analyst at HDFC Securities.
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