US Fed holds key interest rate with signal for three cuts this year : Daily Market Update - 21 March 2024 | Globe Capital Market LTD.
US Fed holds key interest rate with signal for three cuts this year : Daily Market Update – 21 March 2024

The U.S. Federal Reserve kept its key interest rate steady for the fifth straight time and continued to signal three rate cuts this year, but indicated that it is not in a rush to ease policy. The Federal Open Market Committee unanimously decided to hold its key interest rate at 5.25-5.5% in March, citing expanding economic activity and easing but elevated inflation, according to its statement on Wednesday night.

Overview and Outlook

Global Stock Market Today

  • US equity markets settled higher in range 0.89% to 1.25%.
  • European equity markets settled on a mix note.
  • Majority of Asian equity markets are trading higher.
  • GIFT Nifty is up by 160 points, Nifty futures is likely to open around 22080 levels (as on 8:30AM).


News highlights from across the globe

  • Stock markets in Asia-Pacific region rose in early trade on Thursday as Wall Street reported fresh highs after the Federal Reserve kept its forecast for three quarter-basis-points rate cuts this year unchanged.
  • The Fed held its benchmark federal fund rates unchanged at current 5.25-5.50% level for fifth straight month in line with market expectation on Wednesday.
  • The yield on the 10-year U.S. bond was trading at 4.25% and Bitcoin was above 67,000 level. Brent crude was trading  at $86.46 a barrel.


Important news updates from the domestic front

  • Wockhardt launched a QIP with floor price of Rs 544.02 per share.
  • Wipro appointed Anne-Marie Rowland as CEO of Capco effective April 1.
  • Torrent Power signed a share purchase agreement with Solapur Transmission for the acquisition of a 100% stake to establish a transmission system for the evacuation of power from renewable energy projects in Maharashtra.
  • TVS Motor approved the issue of cumulative non-convertible redeemable preference shares up to Rs 1,900 crore via bonus. It appointed Vijay Sankar and Shailesh Haribhakt as independent directors, effective March 20 and April 1, respectively.
  • Power Finance Corp transferred unit Solapur Transmission to Torrent Power for Rs 7 crore.
  • Rail Vikas Nigam emerged as the lowest bidder for a railway project worth Rs 167 crore for Southeastern Railway.
  • JSW Infrastructure achieved a significant milestone as total cargo handled on a consolidated basis crossed 100 MMT.
  • Jupiter Wagons acquired Bonatrans India for Rs 271 crore, becoming the first Indian rolling stock manufacturer with its own wheel plant.
  • Prince Pipes and Fittings signed an agreement with Klaus Waren Fixtures and NM Shah for the purchase of the ‘Aquel’ brand and other assets worth Rs 55 crore to set up an in-house manufacturing facility, resulting in building greater value in the bathware segment.


Nifty Overview & Outlook

Benchmark Nifty index settled on a flat note at 21839 levels after a highly volatile trading session.

Broader markets too performed in line with benchmark as Mid and Small cap index ended on a flat note.

No significant change was observed on the sectoral front. Nifty Metal was the worst performer, fell 0.79%. On the other hand, Nifty Realty index was the top gainer, rose 0.62%.

On Thursday, Nifty index is likely to be highly volatile as it will react on US Fed’s outcome on interest rate. On levels front, immediate resistance is placed around 22100 levels while support is placed around 21800 levels.


Derivatives Overview & Outlook

Yesterday, Nifty, Banknifty and Finnifty futures remained almost unchanged on the price front, whereas on open interest front, Nifty and Banknifty futures added by 0.4% and 1.6% of open interest respectively and Finnifty futures open interest decreased by 14.4%.

On the sectoral front, fresh long buildup was seen in Automobile and Banking shares. Fresh short was seen in Chemicals, Textile and Metals stocks.

On options front, call writing along with put writing was seen at multiple strikes and maximum positions are at 21500 PE followed by 21800 PE and 22000 CE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 2599 Cr in the cash segment, bought stocks futures worth Rs 1881 Cr and sold index futures worth Rs 928 Cr. DIIs were net buyers in the cash segment to the tune of Rs 2668 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 21990-22110; Supports 21810-21665

Banknifty – Resistances 46680-46890; Supports 46140-45870

Finnifty – Resistances 20700-20800; Supports 20490-20400




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