SGX Nifty, US dollar to Dow Jones — key factors that may dictate global markets today

“Most global markets were up on Wednesday after Federal Reserve Chair Jerome Powell struck a less hawkish tone than feared during a recent speech. European markets touched a 9 month high,” said Deepak Jasani, Head of Retail Research at HDFC Securities.

Here we list out important changes that took place overnight:

US markets

On Wall Street, S&P 500 index nosedived 1.11 per cent, Dow Jones dipped 0.61 per cent whereas tech-heavy Nasdaq crashed 1.68 per cent on Wednesday session. US markets witnesses sell off after route in Google share price as the tech giants AI chatbot ‘Bard’ reportedly gave wrong answers during an online promotion. This led to sour the sentiments in regard to the big tech company’s stock on Wall Street. Tech heavyweights Meta Platforms, Apple and Amazon too witnessed sell off and finished in red territory.

“Immediate support for Dow Jones index is placed at 33,880 whereas strong support for the index is placed at around 33,680 levels. The index is facing immediate hurdle at 34,350 whereas it is facing strong resistance at 34,600 levels. So, shorter range for Dow Jones on Thursday would be 33,880 to 34,350 while broader range of the index will lie in between 33,680 to 34,600 levels,” said Anuj Gupta, Vice President — Research at IIFL Securities.

US Fed on inflation

US stocks witness further sell off after Federal Reserve Governor Christopher Waller’s jibe on road ahead for stable inflation. The Fed member said that for road to stable inflation, further rate hike is required. This triggered further sell off on Wall Street.

SGX Nifty

SGX Nifty today opened higher at 17,911 levels, logging around 21 points gain in early morning trade on Thursday. Signaling positive opening for the Indian stock market today, SGX Nifty made an intraday high of 17,928 whereas it made intraday low of 17,835 that means the index is sustaining above the breakout level of 17,750.

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Expecting positive opening for Indian stock market today, Anuj Gupta of IIFL Securities said, “SGX Nifty has given a decisive breakout at 17,750 levels and now it is heading towards 17,900 and 18,100 levels. On lower side, immediate support for SGX Nifty is placed at 17,750.”

Asian markets

In early morning session, Japanese Nikkei is down 0.31 per cent, Hong Kong’s Hang Seng is down 0.18 per cent, Chinese Shanghai is down 0.04 per cent whereas South Korean KOSPI is is down 0.04 per cent.

US bond yield

In early morning deals, US bond yield for 10 year is down 0.80 per cent at 3.607 whereas US bond yield for 30 year is down 1.08 per cent to 3.672 levels.

US dollar rates

US dollar continued to feel the sell off pressure after US Fed chief Jerome Powell’s less hawkish stance on interest rate. However, it registered some bounce back after US Fed member Christopher Waller’s jibe on road ahead for stable inflation on Wednesday. The US dollar index is currently down by 0.02 per cent at 103.317.

Gold price

On Wednesday, gold rates finished at 57,227 on MCX, logging ₹30 per 10 gam dip in intraday session. Gold rate today in international spot market is quoting slightly above $1,875 per ounce levels.

“Overall outlook for gold price is positive. In international market, gold prices are facing resistance at $1,890 and $1,920 levels whereas it has support placed at $1,860 and $1,835 per ounce levels. Domestic investors can buy gold around ₹57,000 levels for immediate target of ₹57,500 levels. However, one must maintain stop loss at ₹56,720 levels,” said Anuj Gupta.

Crude oil price

On MCX, crude oil price finished ₹117 per barrel higher at ₹6,480 levels. In international market, crude oil price is quoting 0.09 per cent higher at $78.50 per barrel.

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