Nifty 50, Sensex open on weak note as new month starts
On Wednesday, Sensex at Bombay Stock Exchange climbed 83.88 points or 0.22 per cent to end at 37,481.12, Nifty at National Stock Exchange added 32.60 points or 0.29 per cent to settle at 11,118, while Bank Nifty gained 84.40 points or 0.29 per cent and closed at 28,876.
Markets have opened on a weak note today with Nifty 50 at 11,060.20, down 57.80 point, while Sensex dropped 190.35 points at 37,290.77, tracking losses in Asian peers after the US central bank announced cut in the key interest rates for the first time since 2008.
All the sectoral indices are trading in red, lead by media stocks.
On Wednesday, Sensex at Bombay Stock Exchange climbed 83.88 points or 0.22 per cent to end at 37,481.12, Nifty at National Stock Exchange added 32.60 points or 0.29 per cent to settle at 11,118, while Bank Nifty gained 84.40 points or 0.29 per cent and closed at 28,876. The top gainer were IndusInd Bank, Tata Steel, and Yes Bank.
According to Zee Business report, amid positive domestic institutional investors, neutral futures and options, negative global markets, foreign institutional investors (FIIs) and sentiment cues, the short-term trend of the domestic Indian markets will be Negative today.
Zee Business's Managing Editor Anil Singhvi has given suggestions for today's market strategy as:
1. The small day range for trading on Nifty stands at 11,075-11,150, while medium day range resides at 11,000-11,200.
2. The small day range for trading on Bank Nifty stands at 28,750-28,950, while medium day range resides at 28,550-29,100.
3. Further down risk opens if Nifty and Bank Nifty trades below 11,000 and 28,500.
In Aaj Ka Hero stock, he suggested to buy Ashok Leyland Futures at Stop loss 68 and target 72, 74. Results in line, margins are better and short-covering expected.
On global front, Asian shares fell to six-week lows on Thursday and the dollar rose after the US Federal Reserve delivered a 25-basis-point rate cut as expected, but poured cold water on market expectations of a lengthy easing cycle. MSCI`s broadest index of Asia-Pacific shares outside Japan slid 0.4%, extending losses for a fifth day to the lowest since mid-June, said a reuters report.
The US Federal Reserve, however, has decided to cut its benchmark interest rate by a 25-basis-point since the 2008 financial crisis. The central bank said US economic activity has been rising at a moderate rate, job gains have been solid and the unemployment rate has remained low, but it justified its decision by citing "muted inflation pressures" and "implications of global developments for the economic outlook."
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Earlier in July month, Fed Chairman Jerome Powell had strongly hinted that the benchmark rate would be lowered at the Federal Open Market Committee meeting due to persistent trade tensions, global weakness and a notable slowdown in business investment.