In today’s trading session, Indian stock indices Sensex and Nifty opened positively, reflecting a cautious optimism in the market. However, Asian markets displayed mixed reactions, influenced by a tech sell-off in the United States. While Japan’s key indices enjoyed modest gains, South Korea’s stock market began robustly but soon encountered volatility.
Key Financial Events to Monitor Today
US Federal Reserve’s Policy Announcement
Investors are keenly focused on the upcoming announcement from the US Federal Reserve, which is expected to provide significant insights into future monetary policy. The market awaits the Fed’s economic projections and the much-anticipated ‘dot plot,’ which outlines potential interest rate changes. Fed Chair Jerome Powell’s comments will be scrutinized for clues about the central bank’s future direction.
Progress in Ceasefire Negotiations
In a significant development regarding the Ukraine conflict, discussions between Donald Trump and Vladimir Putin have led to an agreement to pursue peace talks. The White House has characterized these conversations as constructive, with both leaders endorsing a temporary ceasefire focused on critical infrastructure.
Surge in Gold Prices
Gold prices have skyrocketed to unprecedented levels, driven by global economic uncertainty and escalating trade tensions. Since the year’s beginning, gold has appreciated over 14%, marking several peaks as concerns about US trade policies loom large.
Market Overview: Technical Analysis
The Indian stock market opened on a positive trajectory today, with the Sensex climbing to 75,473.17, a 0.23% increase, and the Nifty rising to 22,849.55, up by 0.07%. According to Shrikant Chouhan, Head of Equity Research at Kotak Securities, the market has successfully broken through key resistance levels, indicating a bullish short-term outlook.
- Key Support Levels: 22,600/74,500
- Profit-Booking Zones: 22,950/75,600 and 23,000/75,800
Chouhan suggests that day traders should adopt a strategy of buying during intraday corrections and selling during rallies.
Market Performance: Gainers and Losers
In early trading, notable gainers included:
- Tata Steel: Up 1.8%
- JSW Steel: Up 1.7%
- BPCL, Adani Enterprises, IndusInd Bank
Conversely, the top losers featured:
- TCS
- HCL Tech
- Infosys
- Tech Mahindra
- Wipro
Global Market Trends
After two days of gains, US markets took a downturn, with major indices experiencing sharp declines. The Dow Jones fell by 0.62% to close at 41,581, while the S&P 500 dropped 1.07% to 5,614, nearing correction territory after an 8.6% decline from its February peak. Notably, the Nasdaq faced the largest drop, plunging 1.71% to finish at 17,504.
Bank of Japan Stays Steady
On the global front, the Bank of Japan decided to keep its key interest rate unchanged at 0.50%, opting to observe the effects of rising global trade tensions before making any policy adjustments.
Looking Ahead: Investor Sentiment
With uncertainty surrounding external factors, especially regarding upcoming tariffs and trade policies, investors remain cautious. According to Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, the domestic economic indicators provide a supportive backdrop for the market, but ongoing external uncertainties may impact investor confidence.
Stocks to Watch
Key stocks recommended for monitoring include TATA Power, NTPC, Cummins India, Indus Tower, and Voltas, which are expected to show bullish momentum on dips.
As the trading day progresses, all eyes are on how these dynamics unfold in the market, given the backdrop of global economic shifts and local developments. For continuous updates, stay tuned to our live blog for the latest insights every 20 minutes!
