The GIFT Nifty recorded a 0.20% gain during Thursday’s early trading session, with a value of 19,845 indicating a positive opening for domestic indices NSE Nifty 50 and BSE Sensex. Benchmark indices NSE Nifty 50 and BSE Sensex ended in the green. The Nifty 50 rose 50 points to close at 19,778.3. On the other hand, Sensex added 350 points to end at 66,707.2.
“Optimism has inched back today after the last three trading days of consolidation ahead of the FOMC meeting. As the market’s ambiguity against the monetary policy is likely to reverse henceforth, going forward we are unlikely to see another Fed rate hike in 2023. This is because inflation has rapidly come down and is forecast to settle down further. However, the interest rate is expected to stay high in the short-term since the rigidity of core inflation remains above the long-term average,” said Vinod Nair, Head of Research at Geojit Financial Services.
Asian Markets
Shares in the Asia-Pacific region were trading in the green on Friday. China’s Shanghai Composite and Shenzhen Component added 0.26% and 0.24% respectively. Japan’s Nikkei 225 fell by a marginal 0.02%. South Korea’s Kospi surged 0.73% while Hong Kong’s Hang Seng jumped 0.70%. The Taiwan Weighted index recorded a gain of 0.47%.
Crude Oil
Oil prices rose on Thursday as investors focused on expectations of tighter supplies from top oil producers, helping reverse earlier losses that were driven by worries that the hike in interest rates by the U.S. will hurt demand. The promise of economic stimulus in China, the world’s second-biggest oil consumer, also lent support to the market.
FII/DII Data
Foreign institutional investors (FII) bought shares worth net Rs 922.84 crore, while domestic institutional investors (DII) purchased shares worth net Rs 470.10 crore on 26 July, according to the provisional data available on the NSE.
F&O Ban
The National Stock Exchange has RBL Bank, Delta Corp, and Sun TV Network securities on its F&O ban list for 27 July. According to the NSE, stocks are prohibited in the F&O sector when they have exceeded 95% of the market-wide position limit (MWPL). During the F&O ban period, no new positions are permitted for F&O contracts in that stock.
Bank Nifty Outlook
“The Bank Nifty Index is currently in a consolidation phase, displaying a lack of significant movements ahead of the FOMC meeting, suggesting market participants are waiting for the outcome before committing to a direction. The index has established a support level at 45600 and a resistance level at 46400. A break above the resistance or below the support on a closing basis could potentially trigger a trending move in the market,” said Kunal Shah, Senior Technical & Derivative Analyst, LKP Securities.
Technical View
“Minor downward correction of the last few sessions seems to have completed and the market is now shifted into an upside bounce. A decisive move above 19850 is likely to open doors for higher target of 20050 in the near term. Immediate support is at 19600 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities
US Federal Reserve Monetary Policy
The Fed lifted its benchmark overnight interest rate by a widely expected 25 basis points, marking the 11th hike in the U.S. central bank’s past 12 policy meetings. Fed Chair Jerome Powell said in a press conference the central bank will make decisions meeting by meeting, closely watching economic data, but noted that a rate cut is very unlikely this year. Powell added that the central bank staff are no longer forecasting a U.S. recession, and “we do have a shot” for inflation to return to target without high levels of job losses.