Can Nifty 50 climb to 23K this week after US Fed downplaying rate hike buzz?

Cue from US Fed gathering outcome

Decoding the US Fed meeting's interaction connected the Indian stock market, Sugandha Sachdeva, Founder of SS WealthStreet said, "As the US Fed has hinted astatine a willingness to chopped involvement rates contempt sticky inflation, it whitethorn initially boost banal prices. Lower involvement rates thin to beryllium affirmative for stocks arsenic they tin stimulate economical enactment and firm profits. However, the cardinal slope has maintained a cautious stance. While determination are indications of a cooling inflationary environment, the Fed has emphasized the request for greater assurance that ostentation volition scope the targeted 2 percent level earlier initiating immoderate complaint cuts."

"This cautious attack reflects the cardinal bank's committedness to ensuring stableness successful the system and the fiscal markets. In essence, portion the anticipation of monetary easing remains connected the horizon, the Fed's insistence connected gathering assurance successful ostentation reaching its people underscores the value of data-driven decision-making and the cautious calibration of monetary argumentation to enactment semipermanent economical maturation and stability," Sugandha added.

Outlook for the Nifty 50 index

Speaking connected the outlook for Nifty today, Sumeet Bagadia, Executive Director astatine Choice Broking said, "During Thursday deals, the Nifty 50 scale has tried thrice to breach the 22,700 hurdle and it is erstwhile again adjacent to the 22,700 mark. Once the Nifty breaches this hurdle today, and closes supra the 22,700 mark, past we tin expect a caller upside successful the 50-stock index."

Bagadia said that the Nifty 50 scale whitethorn soon interaction the 23,000 level, erstwhile the 50-stock scale gives a caller breakout supra 22,800 connected a closing ground oregon sustains supra this hurdle for a fewer hours.

However, Ganesh Dongre, Senior Manager — Technical Research astatine Anand Rathi said, "The Nifty 50 scale is signaling overbought information connected method chart. So, we whitethorn spot nett booking if the 50-stock scale fails to breach supra 22,700 mark. However, the scale volition beryllium facing a hurdle astatine 22,800 arsenic well. So, the 50-stock scale needs to breach the 22,800 hurdle decisively. This volition guarantee that the Nifty 50 scale whitethorn ascent 23,000 levels successful the adjacent term."

Stocks successful focus

Advising banal marketplace investors to stay vigilant astir Nifty 50 heavyweights, Saurabh Jain, Vice President — Research astatine SMC Global Securities said, "For keeping the marketplace temper intact, shares of Reliance Industries Limited (RIL), HDFC Bank, Infosys, Tata Consultancy Services (TCS), ICICI Bank, and Kotak Mahindra Bank clasp the key. The marketplace can't spend immoderate dip successful these frontline Nifty 50 stocks successful the adjacent word if determination is nary appreciation successful these stocks. These Nifty 50 stocks clasp astir 35 percent value successful the 50-stock scale and immoderate dip successful these shares whitethorn crook the tide successful favour of bears. So, it is important for these shares to astatine slightest clasp their crushed to supply sentimental enactment to Dalal Street bulls.

Disclaimer: The views and recommendations made supra are those of idiosyncratic analysts oregon broking companies, and not of Mint. We counsel investors to cheque with certified experts earlier making immoderate concern decisions.

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Published: 02 May 2024, 12:40 PM IST