- Indian indices opened cautiously tracking global cues, crude oil.
- Asian markets recovered, but Wall Street closed lower overnight.
- Rising crude prices and Fed policy influence investor sentiment.
Indian benchmark indices opened on a cautious note on Wednesday, October 14, as elevated crude oil prices and weak overnight cues from Wall Street weighed on sentiment. The modest opening came after a strong recovery in the previous session, with investors also tracking developments around US Federal Reserve policy and geopolitical tensions.
The BSE Sensex rose marginally and tested 73,050, while the NSE Nifty50 slipped almost 50 points and traded at 22,680, as of 9:15 AM.
GIFT Nifty Signals Cautious Start For Dalal Street
The GIFT Nifty pointed to a subdued opening for domestic equities. The futures contract was trading at 22,766.50, down 69 points, indicating caution among investors ahead of the trading session.
At around 9:05 AM, the Sensex was trading at 73,131.77, up 97.99 points, or 0.13 per cent. The Nifty stood at 22,726.15, gaining 8 points, or 0.04 per cent.
Market participants are expected to track global equity movements, crude oil prices and signals on the US Federal Reserve’s interest rate outlook. The impact of geopolitical developments on energy supplies is also likely to remain a key consideration.
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Asian Markets Recover After Two Sessions Of Losses
Asian markets moved higher on Wednesday, recovering from losses over the previous two sessions as investors assessed the outlook for US monetary policy.
Comments from Federal Reserve Governor Christopher Waller helped ease some concerns about an aggressive tightening of monetary policy. Waller said inflation expectations remained well anchored and noted that higher bond yields could also reflect expectations of stronger economic growth.
Japan’s Nikkei 225 rose 0.53 per cent, while South Korea’s Kospi advanced 1.06 per cent.
The recovery in Asian equities came despite a weak finish on Wall Street overnight.
Wall Street Ends Lower As Investors Assess Rate Outlook
US markets closed in negative territory on Tuesday, with all three major indices registering losses.
The Dow Jones Industrial Average declined 0.35 per cent, while the S&P 500 edged down 0.02 per cent. The Nasdaq Composite ended 0.15 per cent lower.
Investors continued to assess the potential direction of Federal Reserve policy and the implications for equities, bond yields and the broader economic outlook.
Crude Oil Prices Rise On Supply Concerns
Crude oil prices extended their gains amid concerns over potential disruptions to supplies following fighting involving Yemen’s Iran-allied Houthis and Saudi Arabia.
On the Intercontinental Exchange, Brent crude futures for December delivery rose 1.18 per cent to $106.96 per barrel.
The increase in oil prices remains a concern for Indian markets, given the country’s dependence on imported crude. Sustained high prices could add to inflationary pressures and weigh on the import bill, while also affecting the margins of oil-sensitive businesses.
Gold And Silver Prices Trade Mixed
Gold and silver futures moved in different directions as traders assessed the possible course of US Federal Reserve policy.
Investors are monitoring interest rate expectations for clues about the outlook for precious metals, with movements in the dollar and bond yields also likely to influence prices.
Expert View: Nifty Support At 22,480, Sensex At 72,500
Shrikant Chouhan, Head of Equity Research at Kotak Neo, said benchmark indices staged a strong recovery in the previous session, with the Nifty gaining 359 points and the Sensex advancing 1,109 points. Most sectoral indices ended higher, while the IT index led the gains with an increase of more than 5 per cent.
From a technical perspective, Chouhan said the market found support around 22,300 on the Nifty and 71,700 on the Sensex before reversing sharply. He noted that the formation of a long bullish candle on the daily chart, alongside a potential reversal pattern on the intraday chart, offered positive signals.
According to Chouhan, the 22,480 level on the Nifty and 72,500 on the Sensex are important support levels for traders. He said the positive outlook would remain intact as long as the indices held above these marks.
On the upside, he identified 22,850 on the Nifty and 73,500 on the Sensex as immediate resistance levels. A sustained move above these thresholds could open the way towards 23,000 on the Nifty and 74,000 on the Sensex.
However, a fall below the identified support levels could weaken the recovery and put the bullish trend at risk, he cautioned.
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: abplive.com
