Good morning! Here’s what’s happening in the stock market today. The domestic market benchmark indices are expected to have a flat-to-negative opening on Monday’s trade. However, there is still plenty of opportunity for smart investors to make profitable trades in this market. Despite mixed global cues, the Gift Nifty is trading around 21,080 level as compared to the Nifty futures’ previous close of 21,090.20. So, keep a close eye on the market today and be ready to take advantage of any promising opportunities that come your way!
According to reports, early trading in Asia saw gains in stocks despite caution from investors. This week is particularly important as it includes several central bank meetings and the Federal Reserve’s final rate decision of the year, along with crucial US inflation data. It will be interesting to see how the market reacts to these events and how it will impact global stocks.
The RBI maintained its policy stance and left the repo rate unchanged. The central bank raised its forecast for GDP growth for FY24, but maintained its forecast for inflation. During the session, the Nifty 50 and the Sensex hit record highs. The Sensex closed up 0.44%, while the Nifty 50 finished up 0.33%. Subscribe to Mint’s WhatsApp Channels to stay updated with the latest financial insights and news!
GIFT Nifty : The Gift Nifty is trading at 21,080 level, down 10.2 points from Friday’s close on Nifty Futures amid mixed global cues. The Nifty saw a strong rally during the week but consolidated later on. Rupak De, Senior Technical analyst at LKP Securities, suggests that 21,000 is a crucial level for the Nifty and might act as a resistance level. On the higher end, a resumption of the current uptrend might be seen above 21000, with the potential to reach towards 21,550. On the lower end, profit booking might increase below significant positions built by put writers at 20,900 and 20,800.
Asian Markets: Asian stocks saw early gains as investors prepared for a week with significant events such as the US inflation data and the Federal Reserve’s annual rate decision, among several other central bank meetings. Japanese shares rose by at least 1%, and Australian and Korean shares also gained. After Wall Street closed with a sixth consecutive weekly gain, futures contracts for US shares remained steady. The Nikkei rose 1.2% last week, and futures for the S&P 500 and the Nasdaq saw minimal changes.
US Payroll data: US job growth accelerated in November as nonfarm payrolls climbed by 199,000 jobs, surpassing economists’ estimate of 180,000. The unemployment rate also decreased to 3.7% from October’s 3.9%.
Wall Street: The US Treasury yields rose after a strong US jobs report that led to markets reevaluating the timing of rate cuts by the Federal Reserve. The S&P 500, the Nasdaq Composite, and the Dow Jones Industrial Average all rose, with energy shares leading the S&P 500 to a four-month high.
China’s consumer prices: A Bloomberg report highlights the economic challenges faced by China as producer costs fell deeper into negative territory, and consumer prices fell at the fastest rate in three years. The national statistics bureau reported the consumer price index decreased by 0.5% from last year, less than the 0.2% decline predicted in a Bloomberg survey.
Dollar Index: According to Reuters, the dollar gained momentum on Monday ahead of the Federal Reserve’s final policy meeting of the year and a reading on US inflation, which is expected to set the tone for the week.
Crude Oil: According to Reuters, oil prices increased for a second session on Monday, despite concerns of oversupply and slower growth in fuel demand next year. US West Texas Intermediate crude futures rose 0.1% to $71.30 per barrel, while Brent crude futures rose 0.2% to $75.95 a barrel at 01:19 GMT.
