D-Street braces for weak opening on negative GIFT Nifty cues

Markets remained volatile on the monthly expiry day, ending largely unchanged as mixed cues kept participants cautious. Going forward, analysts say a decisive move above the 20-DEMA, currently around 22,825, would strengthen the prospects of further recovery towards 23,100-23,300 zone. Failure to cross this hurdle, however, could cause the recent rebound to lose momentum.

STATE OF THE MARKETS

GIFT Nifty (Earlier SGX Nifty) signals a negative start

GIFT Nifty on the NSE IX traded lower by 153.5 points, or 0.67 per cent, at 22,658.5, signaling that Dalal Street was headed for a negative start on Wednesday.


Tech View: The overall setup suggests a sideways to mildly positive outlook in the short term. On the downside, 22,600 remains an immediate support, while 22,800 is the key hurdle. A sustained move above 22,800 could open the door for a test of 23,000. Hence, traders should adopt a level-based trading strategy.

India VIX: India VIX, which is a measure of the fear in the markets, fell 4.4% to settle at 16.40 levels.

Asian shares rise

Asian stocks climbed for a second consecutive day as enthusiasm for the artificial intelligence trade lifted equities ahead of earnings from tech megacaps and the Federal Reserve’s interest-rate decision.

• S&P 500 futures were little changed as of 9:49 a.m. Tokyo time
• Hang Seng futures rose 0.3%
• Japan’s Topix rose 0.4%
• Australia’s S&P/ASX 200 rose 0.5%
• Euro Stoxx 50 futures fell 0.1%

US stocks end higher

An AI-fueled tech rally sent US stocks to a higher close on Tuesday as third-quarter reporting season gained steam, while the Federal Reserve convened for its penultimate meeting of the year.

Gold edges higher

Gold prices edged higher on Wednesday after rising about 1% in the previous session, as investors awaited the Federal Reserve's policy decision later in the day, where the central bank is widely expected to leave interest rates unchanged.

Dollar steadies

The US dollar held at a two-week high on Wednesday ahead of policy decisions from central banks, with the Federal Reserve widely expected to leave its policy interest rate unchanged while signalling the probability of any December move.

Read more: Ahead of Market: 10 things that will decide stock market action on Wednesday

Stocks in F&O ban today

SAIL

Securities in the ban period under the F&O segment include companies in which the security has crossed 95% of the market-wide position limit.

Read more: Jio’s big-bang listing may give it stock market’s No.2 crown after Reliance Industries

FII/DII action

Foreign portfolio investors net bought shares worth Rs 4,240 crore on Tuesday. DIIs, meanwhile, were net sellers at Rs 1,250 crore.

Rupee

The rupee closed marginally up by 3 paise at 95.12 against the US dollar on Tuesday, backed by likely intervention from the Reserve Bank amid elevated crude oil prices and a stronger greenback ahead of the US Federal Reserve's policy decision.

Disclosure: This article has been written by Podishetti Akash, who is not a SEBI-registered Research Analyst or an Investment Adviser. Podishetti Akash and his ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclosures here