The Good News: Expectations remain elevated for a strong year-end finish for Nifty. However, it increasingly appears that a rate cut from both the RBI and the Fed may be the spark needed to reignite positive momentum.
The positive catalysts for the day: The renewed optimism from Wall Street could lend support to Indian equities.
So, amidst this backdrop, the large wave of selling doesn’t seem probable. In fact, dip buying should be the gyan mantra.
Long Story Short: Bulls may to regroup at lower levels. Aggressive risk-on sentiment appears likely today — only if Nifty manages to hold its biggest support at 25951 mark.
7:00 AM GLOBAL UPDATE:
GIFT Nifty 🇮🇳: (-7, 26200)
Dow Futures: (+91, 47565)
Nasdaq 100 Futures (+27, 25583)
Nikkei (+403, 49705)
Hang Seng (-114, 25981)
Dow Jones (+185, 47475)
Nasdaq Composite (+138, 23414)
Bovespa (+2481, 161092).
WHAT HAPPENED AT WALL STREET IN OVERNIGHT TRADE:
Wall Street bounced back overnight, with dip-buying pushing the Nasdaq to lead the rebound.
The Street was keenly awaiting President Donald Trump’s signal on the next Fed Chair. Trump said he will reveal his choice in early 2026, though markets remain far more focused on the upcoming Fed meeting for immediate policy cues.
CME FedWatch shows an 89.2% probability the Federal Open Market Committee will cut interest rates by 25 basis points when it meets next week.
As on Tuesday’s closing bell, the Nasdaq Composite gained 0.6% to 23,413, the blue-chip Dow Jones Industrial Average was up 0.4% at 47,474, and the broad-based S&P 500 had risen 0.3% to 6,829.
Gold prices ($4205 per ounce) slipped a bit as investors booked profits after prices reached a six-week peak. That said, mounting expectations of a US interest rate cut next week acted as positive catalyst.
Meanwhile, gold is up nearly 60% this year and pacing toward its strongest annual performance since 1979.
WTI crude oil futures ($58.70) are trading with negative bias as traders monitored geopolitical developments in Venezuela and Ukraine and their potential impact on oil supply.
US President Trump held a meeting on Venezuela after tensions escalated, with Trump warning during the weekend that the country’s airspace should be considered closed. Meanwhile, Ukraine has carried out repeated strikes on energy facilities belonging to the OPEC+ producer.
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