I see Nifty range breaking today, 19,250-19,300 on the upside: Sanjiv Bhasin

Sanjiv Bhasin, Director, IIFL Securities, says “the Fed was extremely dovish and Powell has indicated now that even though there is no chance of a rate cut, there is no chance of a rate hike. And if yields trade 10 bps lower, below 4.65 the dollar will weaken and there will be a flurry of ETF flows back into emerging markets.”


Pretty much a long expected lines, the Fed event out of the way, it is a pause once again and seems like we are in for a snapping the range which we have been stuck in for the last three days and finally see some meaningful uptick?
Yes, that is what we were suggesting yesterday that bond yields have peaked and most of the event discounting was taking place with the markets having been on a weak note. I think the Fed was extremely dovish and Powell has indicated now that even though there is no chance of a rate cut, there is no chance of a rate hike. And if yields trade 10 bps lower, below 4.65 the dollar will weaken and there will be flurry of ETF flows back into emerging markets. We have seen that in Japan. That is a developed market but I am very optimistic given that the euro zone yesterday recorded the lowest inflation in the last two years.


So banks, credit lenders and the whole proxy of credit expansion because of the festive season should do extremely well. I am looking at this range breaking today itself, that 19250-19300 on the upside and then we chart our way towards a very sparkling Diwali by next week.