The US Federal Reserve has reduced interest rates by 0.25% on Wednesday, cutting the rates for the third consecutive time, sidestepping concerns over inflation’s downward path and the potential impact of Donald Trump’s policy decisions.
The Fed has lowered the federal funds target rate range by 0.25% to between 4.25% and 4.5% and reduced the reverse repo rate to 4.25% from 4.55%, a 30-basis-point cut.
US Federal Reserve cuts key interest rates by 0.25%- Daily Market Update 19th Dec 2024
Overview and Outlook
Global Stock Market Today
- US equity markets settled lower in range 2.5% to 3.25%.
- European equity markets settled on a flat note.
- Asian equity markets are trading lower.
- GIFT Nifty is down by 300 points, Nifty futures likely to open around 23925 levels.
Nifty Overview & Outlook
Benchmark Nifty index settled lower for third consecutive trading sessions, closed shop at 24198.85 levels after a cut of 137 points from its previous closing values.
Broader markets performed in line with benchmark as both Mid and Small cap index fell just over 0.5% each.
Majority of sectoral indices tracked at NSE settled in red. Amongst them, Media index was the worst performer fell over 2% followed by PSU bank index that fell 1.92%. On the other hand, Pharma index posted some meaningful gains, rose over 1%.
Technically, Nifty index is trading on verge of breakdown from an important supports of 24150 spot levels. Cross and sustenance below the same might take it towards 23800 and lower levels in immediate near term.
Derivatives Overview & Outlook
Yesterday, Nifty, Banknifty and Finnifty futures added 1.4%, 7.7% and 14.5% of open interest respectively as short buildup whereas no meaningful activities was seen in Midcapnifty futures on open interest front.
All F&O sectors, barring Pharma, settled lower. Amongst them, Power, Realty and Banking stocks witnessed maximum addition of short positions whereas some long unwinding was seen in Media stocks.
On options front, further call writing was seen at multiple strike and maximum positions are at 25000 CE followed by 24300 CE and 24000 PE. Quantum of call positions is significantly higher than the quantum of put positions that is a negative sign.
Institutional Trading Activity
Yesterday, FIIs sold stocks worth Rs 1317 Cr in the cash segment, sold stocks futures worth Rs 942 Cr also sold index futures worth Rs 811 Cr. DIIs were net buyers to the tune of Rs 4084 Cr in the cash segment.
Nifty Futures, Banknifty Futures and Finnifty Key Levels
Nifty – Resistances 24320-24400; Supports 24280-24080
Banknifty – Resistances 52350-53600; Supports 52000-51750
Finnifty – Resistances 24400- 24520; Supports 24200-24080
F&O Security in Ban Today: BANDHANBNK, CHAMBALFERT, GRANULES, HINDCOPPER, MANAPPURAM, NATIONALUM, NMDC, PVRINOX, RBLBANK, SAIL.
Disclosure
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