Stock market today: Trade setup for Nifty 50 after US Fed meeting, seven stocks to buy or sell on Thursday — May 2
Stock market today: Following strong global market sentiments after the US Fed chair downplayed the rate hike buzz in the US Fed meeting on Wednesday, the Indian stock market is expected to react to this overnight trigger. This US Fed news is expected to offer some relief to the global markets including Asian and the Indian stock markets today. On Wednesday, US dollar rates came under profit-booking pressure and the US dollar index came below the psychological 106 level.
This triggered buying in the US stock markets. Dow Jones index finished 0.23 percent higher on Wednesday whereas the Smallcap 2000 index finished 0.12 percent higher. However, the S&P 500 and Nasdaq ended in the red zone.
Speaking on how the US Fed meeting outcome would impact the Indian stock market, Sugandha Sachdeva, Founder at SS WealthStreet said, "In the US Fed meeting yesterday, Fed chair Jerome Powell hinted a willingness to cut interest rates despite sticky inflation, it may initially boost stock prices. Lower interest rates tend to be positive for stocks as they can stimulate economic activity and corporate profits." She said that Jerome Powell's dovish stance on the US Fed rate has weakened the US dollar and the trend is expected to continue in the near term. Speaking on the outlook for the Nifty 50 today, Neeraj Sharma, AVP Technical and Derivatives Research at Asit C Mehta said, "Domestic benchmark indices opened higher on Tuesday, driven by positive global cues.
Due to strong buying interest, the Nifty registered a fresh all-time high of 22,783.35. But following that, there was a significant amount of profit booking, and the index ended the day lower at 22,605. Moreover, the Volatility Index, India VIX, surged by 5.19% ahead of the US
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