Pre Market updates
US stocks ended mixed after a lot of back and forth during the day. Participants also digested the latest FED meet minutes that took note of tight labour market and inflation trending well above the FED range of 2%. Minutes also noted welcome reduction in inflation print but stressed that more evidence on the same is needed to change the guard. Dow lost 0.26%, S&P lost 0.16% but Nasdaq gained 0.13% at close.
USD index moved higher near 104.52, 10 year eased near 3.92% and cboe vix closed modestly lower near 22.25.
Crude futures dropped nearly 3% to two week lows on worries over aggressive rate hike hurting demand, WTI fell below 74, Brent near 80.
Indian stocks extended their losses for the fourth consecutive session to post its biggest losing streak in 5 months. BFSI names were hit the hardest as Bank Nifty closed below 40000 for the first time since October 17 2022, Oil and Gas also took a knock in Wednesday's session. Nifty closed near 17550 and Sensex closed below 60000.
Global sentiments and February series expiry related volatilty may dominate trade for today. Markets may also wait for FED's favourite gauge, the core CPE data later this week for direction. Participants may continue to use current give backs to rebalance portfolios for medium to long term. Participants with near term view may start building some long position as current sell-off in the markets may have taken stocks to oversold zone from where a sharp short term reversal may get triggered.
By: via Telegram.me/AlliesFin #StockMarket #india
