@AlliesFin
Post FED meet comments Dow rallied 1.40% to cross 37000 for the first time, S&P gained 1.37% and Nasdaq closed 1.38% higher. Fed's indication of several rate cuts in 2024 took indices to fresh 52 week highs and Russell 2000 3.52% higher.
USD index and 10 year yields were sharply lower, Dxy traded below 103 and 10 year fell near 4.00% mark.
Crude futures saw a quick rebound from five months lows as FED's Xmas gift of multiple rate cuts probability helped risk-on sentiment for the commodity. WTI moved near 69.50, Brent moved above 74.
Indian stocks closed marginally higher amidst volatility ahead of crucial FED meet. Auto, Power and Pharma stocks helped indices recover from intraday lows. Sensex added 34 points and Nifty gained 20 points at close.
Strong global equity sentiments, fall in USD index / 10 year yields may help Indian stocks to trade into fresh life highs at open. Participants may watch out for weekly options expiry related volatility and avoid chasing stocks at big gap ups. The upcoming holiday period and absence of institutional activity thereon may result in extreme high volatility for the next few sessions and its better to keep short term positions under check to navigate huge price moves on low volumes.
T.me/AlliesFin
By: via Telegram.me/AlliesFin #StockMarket #Bharat
