Nifty pulls back down ahead of the FOMC meeting outcome as uncertainty swirls over the magnitude of the upcoming Federal Reserve rate cut.

*Closing Bell —— Wednesday, September 18th 2024*

*Review & Preview @4PM —— Wednesday, September 18th 2024*

NIFTY (-41, 25377)
Sensex (-131, 82948)
Bank Nifty (+562, 52750)

Nifty pulls back down ahead of the FOMC meeting outcome as uncertainty swirls over the magnitude of the upcoming Federal Reserve rate cut.

Nifty IT Index tumbles 3%.

According to the CME FedWatch tool, the probability of a larger 0.50% cut stands at 61%. The probability of a cut of any size is 100%.

# Buzzing stocks:

1) IT stocks like INFY (-3%) TCS (-3.5%) MPHASIS (-5.6%) PERSISTENT (-3.3%) and LTTS (-3.25%) witnessed massive profit booking ahead of FOMC decision.

Nifty IT Index tumbles 3%.

Losses in IT sector’s stocks were also on backdrop of Accenture’s 5% drop on news that Accenture Plc is planning to push back the bulk of its staff promotions by six months due to a challenging consultancy environment.

2) ICICI Bank scaled fresh all-time-high at Rs 1295 and most importantly, mcap hits Rs 9 lakh crore milestone for first time.

ICICI Bank Ltd became the fourth Indian firm to cross market capitalisation of Rs 9 lakh crore for the first time on September 18 after its shares rallied over 30 percent so far in 2024.

3) Bajaj Housing Finance shares dropped 4.66% lower in today’s trade amidst profit booking after its bumper debut in Monday’s trade.

BAJAJHFL now at Rs 173, has surged 155% above the IPO issue price of Rs 70.

The m-cap of the Bajaj Housing Finance continues to be above Rs 1-trillion mark.

# Sentimental Overview:

Bullish traders excited that the Federal Reserve is likely to lower interest rates on Sept 18th.

Traders will spy with one big eye on how large that cut will be.

Most importantly, investors will be on the lookout for the Fed’s Summary of Economic Projections, or dot plot, which includes Fed’s expectations for where the interest rates will be going forward.

# Technical Overview:

Nifty traded volatile near its new record high at 25445.70 mark but digging deeper, the price action reflected uneasiness.

Despite today’s consolidation, Nifty’s price action and the short-term technical outlook for remains in favor of bulls.

The street is actually hoping for more fireworks at the FOMC meeting outcome which will conclude on September 18th.

Nifty’s immediate goalpost continues to be at psychological 26000 milestone.

The line in the sand is at Nifty’s psychological support at 25000 mark.

# Outperforming Nifty Sectors:

Nifty FINANCIAL SERVIES (-1.22%)
BANK NIFTY (+0.88%)
Nifty PRIVATE BANKS (+0.77%)

# Underperforming Nifty Sectors:
Nifty IT (-3.03%)
Nifty PHARMA (-1.59%)
Nifty OIL & GAS (-1.163%)

(Source NSSEINDIA.com)

# Bulls of the day:
SHRIRAMFIN (+4.22%)
BAJAJ FINANCE (+3.36%)
BAJAJ FINSERV (+1.76%)
NESTLE (+1.72%)
HDFC BANK (+1.45%)

# Bears of the day:
TCS (-3.5%)
INFY (-3.08%)
HCL TECH (-3.07%)
TECH MAH (-2.83%)
WIPRO (-2.57%)

(Source NSSEINDIA.com)

 

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*Disclaimer:* This does not construe to be an investment advice. Stock market investments are subject to market risks. All information is a point of view, and is for educational and informational use only. The author accepts no liability for any interpretation of articles or comments on this platform being used for actual investments. Returns mentioned herein are in no way a guarantee or promise of future returns. Stock market investments are subject to market risks.