MARKET WRAP: Fed hikes rate; Sensex slips 53 pts, PSBs, metals crack

the Nifty Metal index ended 1.04 per cent lower weighed by National Aluminium Company, Vedanta and Steel Authority of India. The Nifty PSU Bank index, too, fell 1.80 per cent due to a fall in SBI

8:52 AM

Stocks to Watch Pfizer, Jet Airways, TCS and Om Metals

A 25 bps rate hike by the US Federal Reserve along with a not so dovish statement by the Chair Jerome Powell sent the US stock market crashing to new lows Wednesday. Asian peers too followed suit and was trading lower in the early trade on Thursday. At 08:40 am, the Nifty futures on the Singapore Stock Exchange (SGX) traded 85 points or 0.77 per cent lower at 10,901, signalling a tepid opening for Nifty50. READ MORE

 

8:47 AM

Today's picks: From BPCL to Powergrid, hot stocks to watch on Thursday

Powergrid 

Current price: Rs 199

Target price: Rs 203
 

Keep a stop at 197 and go long. Add to the position between 201-202. Book profits at 203. READ MORE

8:44 AM

Trading ideas by Prabhudas Lilladher: BUY Himadri Speciality Chemical

CMP: Rs 137.80

TARGET: Rs 155

STOP LOSS: Rs 127

 

The stock has been on a rising trend and it has decisively moved above the cluster of significant moving averages to look attractive and potential to move further up. The RSI indicator is on the rise supporting to our positive bias view and along with good volume participation seen in recent days, we recommend a buy in this stock for an upside target of 155 keeping a stop loss of 127. READ MORE

8:39 AM

Nifty outlook by Prabhudas Lilladher 

 

The market has given a one-way rally gradually progressing above 10900, we may see some profit booking or sideways move at this level, however, the trend still shows an upside projection of 11150. Support for the day is seen at 36280/10910 while resistance is seen at 36675/11020. Bank Nifty would have a range of 27100-27500. Metal stocks have begun showing signs of a bounce back along with other sectors, now Pharma needs to contribute. The bias remains positive. Read more

8:36 AM

Stock calls by Tradebulls Securities

 

Stock: M&M

Reco.: BUY

CMP: Rs 785.90

 

The stock is bouncing from “Double Bottom” formation from recent lows around 690 levels and is gaining momentum on the upside. Daily RSI has crossed above 50 levels along with a positive crossover and price closing above 50 DEMA for the first time since breach below this September augurs well for further upward move till 830 levels in near future. Trading longs can be initiated with stop below 760 price confluence support for test of 830 levels. Read more

8:34 AM

Fed defies Trump, hikes rate for fourth time in 2018: Key takeaways

 

Defying pressure from the US President Donald Trump to pause rate hikes, the US Federal Reserve raised interest rates by a quarter-point on Wednesday, thus taking the target range for its benchmark funds rate to 2.25 per cent to 2.5 per cent. The move marked the fourth increase this year and the ninth since it began normalising rates in December 2015. Click here to read more

8:29 AM

Rupee check

 

The rupee pared early gains but managed to end 5 paise higher at 70.39 against the US dollar on Wednesday on increased selling of the greenback by exporters amid benign crude oil prices and smart gains in domestic equities. 

 

8:29 AM

MUST READ With another rate hike, has the Fed just pushed US towards a bear market?

U.S. stocks took another body blow on Wednesday after the Federal Reserve raised interest rates again and the central bank chairman did not soften his tone about the outlook for further financial tightening to the degree investors had hoped. Now the question is whether Powell's message that the U.S. economy should be strong enough to stand on its own without further assistance from the Fed will be the catalyst that tumbles stocks to bear market levels READ MORE

 

8:27 AM

WEB EXCLUSIVE 26 NSE 500 stocks that are showing strength as per their RSI

Relative Strength Index, or RSI, is the most frequently used technical indicators in the stock market. Besides identifying overbought and oversold positions, the indicator has been embraced as a trend confirming measure. The overbought level is 70 and oversold level is 30. Whenever the stock / index reverses from oversold region and heads above the 50 level, the trend is said to be in a confirmed upside CLICK HERE FOR MORE

8:25 AM

Oil check 

 

Oil prices remained battered near their lowest levels in more than a year although they posted some gains on Wednesday from sharp selloff earlier this week after US data showed strong demand for refined products.

 

US crude futures were little changed at $47.38 per barrel, having fallen to $45.79 earlier this week, the lowest since late August 2017.

8:21 AM

SGX Nifty

SGX Nifty was trading at 10,895.50 levels, down 90.50 points or 0.8 per cent in early trade.

8:20 AM

MARKET COMMENT Nomura on RBI minutes

With a new RBI governor in place, the composition of the MPC will turn less hawkish at the next meeting in February. However, with the majority of the remaining five MPC members still concerned about upside risks to inflation and sanguine about the growth outlook, we think a rate cut in February can be largely ruled out.

 

We disagree with the MPC’s optimistic growth assessment and its concerns that upside inflation risks will materialise. We continue to believe tighter financial conditions, weak global growth and the negative fiscal impulse will slow GDP growth towards 6.0-6.5% in H1 2018, from 7.1% in Q3 2018.

Weak growth amid easing input cost pressures should keep inflation ~4% in 2019. We expect monetary policy to take a dovish tilt, starting with a change in policy stance back to ‘neutral’ in February or April, followed by a 25bp rate cut in Q3, though risk of an earlier cut is rising, owing to lower oil prices and a neutral-to-dovish bias of the new RBI governor, who we believe will also be more accommodative on banking regulations.

8:19 AM

MARKET COMMENT Rabobank International on US Fed rate hike

The changes to the FOMC post-meeting statement reflect that monetary policy is now closer to the neutral level and becoming more data-dependent. During the Q&A, Chairman Powell made clear that the Fed would not be influenced by President Trump’s tweets. We think that the FOMC will take a pause after a final hike in March leads to an inversion of the yield curve

8:17 AM

Asian shares pull back after Fed's signals for more rate hikes

 

Asian shares retreated on Thursday after the US Federal Reserve raised rates, as expected, and kept most of its guidance for additional hikes next year, dashing investor hopes for a more dovish policy outlook.

 

MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 0.34 per cent, with Australian shares dropping as much as 0.65 per cent to two-year lows. Japan’s Nikkei shed 0.8 per cent to nine-month lows.

8:12 AM

S&P 500 pares gains, Nasdaq turns negative after Fed hikes lending rate

 

US stocks pared gains on Wednesday, with the Nasdaq index turning negative, after the Federal Reserve raised interest rates but forecast fewer rate hikes for 2019.

 

The Dow Jones Industrial Average rose 81.11 points, or 0.34 per cent, to 23,756.75, the S&P 500 gained 6.7 points, or 0.26 per cent, to 2,552.86 and the Nasdaq Composite dropped 10.61 points, or 0.16 per cent, to 6,773.30.