Category: Market Outlook
22 November 2024
US stocks closed higher as the Trump trade that may benefit cyclicals gained momentum. Dow gained 1.06% and money rotated out of technology towards beneficiaries of economic strength, S&P added 0.53% and Nasdaq closed just above the flat line. The other beneficiary of the new regime Russell 2000 too gained 1.65%.
USD index rose to multimonth highs crossing 107, 10 year remained steady near 4.42% and cboe vix closed lower at 16.87.
Crude futures gained almost 2.00% as Ukraine conflict overpowered other factors. WTI crossed 70, Brent near 74.
Indian markets closed lower reversing from Tuesday's gains as indictment of Adani chairman on bribery, geopolitical tensions and weak earnings related sentiments gripped the minds on Dalal Street. Sensex fell 422 points and Nifty gave back 169 points. Most sectors barring Realty and IT ended lower in a broad-based selloff in Indian markets.
*Strong global equity cues, rising crude prices and USD index, aftermath of yesterday's selloff may dominate trade set up on Dalal Street. Participants may however look at opportunities in individual names as stocks are now trading at extreme oversold zone and they may look beyond the current negativity and the focus may shift to furure earnings visibility. Continue to build small positions for a cycical rally phase towards end of calender.*
(3.41 am IST)