GIFT Nifty is pointing to a sluggish start, perfectly in sync with our “Call of the Day” — suggesting bullish consolidation ahead for benchmark Nifty.
Traders will eye the Bihar elections results to be declared on Nov 14th .
The good news is that Nifty’s downside is likely to be limited as bullish sentiment continues to be fueled by three positive catalysts:
1) Bihar’s exit polls indicated a decisive win for the BJP–JD(U) alliance, with most pollsters forecasting a landslide victory for the ruling coalition and a major setback for the Tejashwi Yadav-led Mahagathbandhan.
2) This Thursday morning, US stock futures continue to enjoy strong session taking over the positive baton from Dow Jones which scaled above 48000 mark in overnight trade.
3) US lawmakers are nearing a deal to end the record-long government shutdown.
Bottom-line: Nifty looks to consolidate, as bullish traders shall prefer to stay on the sidelines despite renewed optimism over an NDA landslide victory in Bihar, with elections held on November 6th and 11th and results due on November 14th.
7:00 AM GLOBAL UPDATE:
GIFT Nifty 🇮🇳: (-8, 25949)
Dow Futures: (+133, 48388)
Nasdaq 100 Futures (+87, 25605)
Nikkei (+247, 51310)
Hang Seng (-143, 26779)
Dow Jones (+327, 48255)
Nasdaq Composite (-62, 23406)
Bovespa (-116, 157633).
WHAT HAPPENED AT WALL STREET IN OVERNIGHT TRADE:
Overnight at Wall Street, the Dow Jones crossed 48,000, marked a new record all-time-high.
The Positive Catalyst: Markets are pricing the end of the longest government shutdown in history.
In Wednesday’s session, the Dow Jones climbed 0.68% to fresh record highs, the S&P 500 edged up 0.06%, while the Nasdaq Composite slipped 0.26%.
Interestingly, the Dow Jones marked a new record all-time-high on ugly jobs data. The Dow was zooming higher despite gloomy jobs data which painted a darker picture for the economy.
The big question: Cracks beneath the surface?
Please note, when markets rally into bad news, it rarely ends quietly
Meanwhile, US Tech stocks continued their rout on Wdnesday as market participants fretted about lofty valuations.
Gold prices ($4175 per ounce) climbed, hovering now near its highest level since October 24, driven by growing expectations of a Federal Reserve’s imminent interest rate cut in December, despite policymakers’ efforts to downplay the likelihood of such a move.
WTI crude oil futures ($58.25) fell over 4% to around a three-week low of $58.42 per barrel on Wednesday, after three straight sessions of gains, as OPEC revised its outlook to show a supply surplus in the third quarter. The group now estimates global supply exceeded demand by about 500,000 barrels per day, reversing its prior deficit forecast.
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