Monetary tightening, China’s Covid lockdowns and Russia’s war in Ukraine have roiled a range of assets this year and left world shares near a bear market.
Market open: Mitul Shah, Head Of Research, Reliance Securities
Indian stocks markets are likely to open gap up as SGX nifty is up around 184 points compared to Yesterday’s spot Nifty closing. Asian Markets trading in green as Nikkei is up 2.6%, while Hang Seng is up 1.9%.
Market technicals: Osho Krishan, Sr. Analyst – Technical & Derivative Research, Angel One
The previous swing low of 15670 is not far away, and it would be a matter of time to retest the same. Though the market subsidized in the oversold region for quite some time, a further correction could be disruptive in the coming period. For the time being, any breach below the 15670 odd zone would bring the possibility for the index to shed another 200-300 odd points in the near period. On the higher end, the 16000-16050 zone is expected to act as immediate resistance, while the strength only could be seen above the 16500-16650 zone.
The ongoing rampage is due to the global macro factors, hence any improvement from the overseas market should act as a catalyst for the bulls. Technically, the bearish formation would only get discarded above the mentioned resistance zone. Until that time, one should remain cautious and keep close track of global and domestic developments. Also, traders are advised to avoid aggressive bets and look for stock-specific action, while investors could now seize this opportunity by initiating accumulation in good blue-chip companies but in a staggered manner.
US Senate confirms Powell for 2nd term as Fed fights inflation
The Senate on Thursday confirmed Jerome Powell for a second four-year term as Federal Reserve chair, giving bipartisan backing to Powell’s high-stakes efforts to curb the highest inflation in four decades.
The 80-19 vote reflected broad support in Congress for the Fed’s drive to combat surging prices through a series of sharp interest rate hikes that could extend well into next year. The Fed’s goal is to slow borrowing and spending enough to ease the inflation pressures.
Since February, when his first term expired, Powell had been leading the central bank in a temporary capacity.
Stocks to Watch
Shares of SBI, Tech Mahindra, RIL, Bank of Baroda, Airtel, Tata Motors, among others, will be in focus today.
SBI, Eicher Motors, Tech Mahindra, Bank of Baroda, Bandhan Bank, Union Bank of India, Alkem Laboratories, Emami, Escorts, Hindustan Aeronautics, Nazara Technologies, REC, Reliance Power are among the companies scheduled to announce their earnings on 13 May.
SGX Nifty rises tracking Asian cues
Nifty futures on the Singapore Exchange rose 166 points, or 1.05%, to 15,982.50, hinting at a positive start to Indian indices.
On Thursday, Sensex tumbled 1,158.08 points to finish at an over two-month low of 52,930.31, while the broader NSE Nifty tanked 359.10 points or 2.2% to 15,808.
Asian shares up; US Fed not actively mulling 75bps rate hike
Stocks and U.S. equity futures rose Friday amid a bout of calm in global markets after Federal Reserve Chair Jerome Powell again pushed back against speculation of more aggressive interest-rate hikes.
Japan, China and Hong Kong helped an Asian share gauge climb 1%. US and European contracts advanced after a volatile S&P 500 session saw the index rebound to close little changed.
Powell reaffirmed the Fed is likely to raise rates by a half point at each of its next two meetings and isn’t “actively considering” a 75 basis-point move.
But he left open the possibility of doing more if needed to get high inflation under control. Concerns that tightening monetary policy will spark an economic downturn continue to shadow markets and have tended to snuff out rebounds.
S&P 500 futures rose 0.7%, Nasdaq 100 futures added 0.9%, and Euro Stoxx 50 futures rose 0.8%.
Japan’s Topix index climbed 1.7%, Australia’s S&P/ASX 200 index rose 1.4%, South Korea’s Kospi index increased 1.6%, China’s Shanghai Composite index rose 0.5%, and Hong Kong’s Hang Seng index added 1.4%.
Overnight, US stocks ended a volatile session slightly lower, as investors juggled fears of nagging inflation with signs it could be peaking. The S&P 500 came within striking distance of confirming a bear market since falling from its all-time high reached in January.
The Dow Jones Industrial Average fell 103.81 points, or 0.33%, to 31,730.3, the S&P 500 lost 5.1 points, or 0.13%, to 3,930.08 and the Nasdaq Composite added 6.73 points, or 0.06%, to 11,370.96.
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