In this article, we have explained the 6 things that changed for the stock market overnight. Here, we have presented the important global as well as domestic market cues for Sensex.
1. GIFT Nifty
Unlike Nifty futures’ earlier close of 19,484, the Gift Nifty has been trading at approximately 19,462 level. Gift Nifty. It is more than 20 points down from the close of Monday on Nifty Futures, and monitoring weak global cues. Rupak De, who happens to be the LKP Securities Senior Technical analyst, has asserted that the Nifty 50 succeeded in maintaining a positive trajectory during the day. However, the rally experienced resistance at the 21DMA (21-day moving average). We expect the trend to go on looking sideways in the near term. Support is positioned at 19,300 points on the lower end.
2. Wall Street
According to a Reuters report, the rates of interest would be lowered very soon following the significant surge in bonds and stocks during the last week, and Treasury yields became high and a measure of global equities increased on Monday. As many as three primary stock indices of Wall Street succeeded in posting gains. There was an increase in the yield on 10-year Treasuries by as much as 9.1 basis points to 4.649%. The NASDAQ composite became high by 0.3%, there was an increment in the Dow Jones industrial average by 0.1% on Wall Street, and the S&P 500 succeeded in gaining 0.18%.
3. Asian markets
There was a decline in Asian stocks as per the Bloomberg news report, and new questions arose regarding whether the Federal Reserve has succeeded in completing its budgeting policy. Stocks plunged at opening in Japan and South Korea, and there was a fall in the Kospi index by approximately 2%.
The focus of the Asian market will be on the central bank of Australia which might raise the rates of interest to conclude a 4-meeting pause. Meanwhile, China is going to declare essential trade statistics, providing insights into whether the nation is waking up from the post-pandemic lethargy.
4. Crude oil
According to a recent report, the prices of oil dropped on Tuesday because of concerns about inadequate demand in China. Investors emphasized trade data scheduled for release during the latter part of the day to figure out the extent of the demand in the second-biggest oil consumer on the planet.
5. Gold
During the early Asian hours of Tuesday, we witnessed a small decline in the prices of gold. Nevertheless, bullion prices continued to stay within a narrow range while investors remained alert before the remarks from Federal Reserve authorities.
6. US dollar index
On Monday, the US dollar strengthened against the euro after a drop to approximately eight-week low on increasing views that the Federal Reserve will not be able to increase the rates of interest. This way, the officials of the US central bank will be observed closely for any additional clues when it comes to rate policy.
Jerome Powell, the Fed chairman, is going to speak on Wednesday and Thursday. The primary emphasis will be on whether he adheres to the more dovish tone adopted by him during the two-day meeting of the Fed last week.
