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SGX Nifty indicates that Nifty on Thursday will open well above the crucial 17,000 mark, the level it last saw on February 23. As global cues are positive and there are some signs of progress in the Russia-Ukraine conflict, analysts expect soft crude oil prices which bodes well for countries like India.
US Fed hike & Market
As expected, the US Federal Reserve hiked interest rates from 0.25 per cent to 0.50 per cent. Its Chief, Jerome Powell, said that central bank sees 6 more rate hikes this year. Powell said the US economy is well positioned to deal with interest rates and FOMC (Federal Open Market Committee) expects to reduce the size of the balance sheet.
SGX Nifty at 17,285 indicates a nearly 300-point gains for Nifty, as Nifty futures closed at 17,008. Asia-Pacific stocks also surged sharply with a gain of 1–2.5 per cent.
Stock-specific action
According to analysts global markets have already discounted these 'expected' moves of US Fed.
"Now, with almost all negative news being discounted, we see the market to remain consolidation phase between 16,500 and 17,500 range," a Chennai-based market veteran said, adding that stock-specific action to continue for quite sometime.
Prashanth Tapse, Vice President (Research), Mehta Equities, said, “Nifty zooms higher as ‘Holi Rally’ gains conviction while short sellers were seen getting squeezed. The positive takeaway is that all sectoral indices ended in the green with Nifty Reality, Metal, Private Banks, Auto indices rising 2 per cent+ each. NSE mid-cap and small-cap indices too rose 2 per cent and 1.2 per cent respectively. The technical landscape has turned aggressively bullish. This optimistic backdrop should easily take Nifty to its magical goalpost at 17,000 and then at 17,500.”
Time to book book profits?
According to some analysts, as the market has gained sharply in the last few days, it is time to book some profits as some "global uncertainty" still persist.
Ajit Mishra, VP - Research, Religare Broking Ltd, said, "Markets will first react to the US Fed meeting outcome in early trade on Thursday. Besides global updates, the scheduled weekly expiry would further add to volatility."
He advised booking some profits on the rise, citing immediate hurdles around the 17,150 zone and focusing on identifying opportunities in sectors that are trading in sync with the benchmark.
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