"TCS Preview & FOMC Meeting Minutes" Pre Market Report Nifty & Bank Nifty 10 October 2024, Range

Summary

The video provides a pre-market report for October 10, 2024, discussing global and Indian market trends. It covers key insights like US inflation expectations, positive movement in major US indices, and the Federal Reserve's stance on interest rates. Indian markets saw mixed results, with sectors like ICC Bank ADR and VIPRO ADR closing positive, while others like Infosys saw profit booking. Key stocks and market indicators like Nifty and Bank Nifty movements were analyzed, along with RBI's unchanged interest rate decision. The video concludes with a technical analysis of Nifty and Bank Nifty support and resistance levels.

Takeaways

• 📈 US markets saw a positive rise with the S&P 500, Dow Jones, and Nasdaq increasing, though there was some nervousness around the Fed's meeting minutes release.
• 💵 US consumer inflation for September is expected to be 2.3%, which is close to the Fed's 2% target, marking a slight decrease from August's 2.5%.
• 💡 The Fed's meeting minutes indicated a preference for a 50 basis point interest rate cut, but with current economic improvements, the focus may shift to a 25 basis point cut.
• 🛢️ Oil prices remained stable amid ongoing Middle East tensions, with WTI crude trading at $73.5 per barrel and Brent crude at $77 per barrel.
• 📊 Indian markets followed global trends, with mixed performances across sectors. Positive results were seen in ICC Bank and Wipro ADRs, while Infosys and HDFC Bank faced profit booking.
• 🇮🇳 India's RBI maintained its interest rate but shifted its stance from 'withdrawal of accommodation' to 'neutral', balancing inflation control with growth.
• 📉 FIIs (Foreign Institutional Investors) were net sellers for the eighth consecutive day, while DIIs (Domestic Institutional Investors) were net buyers.
• 📅 TCS is set to release its Q2 earnings today, with expectations of a 2.7% revenue increase, a 4% EBIT rise, and a 4.9% net profit increase.
• 📉 Nifty formed a small bearish candlestick pattern after hitting resistance at higher levels, but buyers are showing strength. It needs to break above the 50-day moving average for bullish momentum.
• 📉 Bank Nifty faced profit booking but managed to defend the 51,000 mark, showing a bearish pattern while breaking the low-high formation.

Q & A

What was the main reason for the US market's positive movement during the pre-market hours?

The positive movement in the US market during the pre-market hours was driven by the expected lower inflation rate of 2.3% for September, as reported by Rogers' poll, which was seen as a positive macroeconomic indicator.

How did the US Fed's September meeting minutes impact the market?

The US Fed's September meeting minutes revealed that most members supported a 50 basis point interest rate cut due to concerns about economic strength. However, given the current positive economic indicators, it was suggested that a 25 basis point cut might be more appropriate, leading the market to stabilize after the announcement.

How did the Dow Jones, S&P 500, and NASDAQ perform according to the script?

The Dow Jones increased by 1.03%, the S&P 500 was up by 0.71%, and the NASDAQ rose by 6%.

What was the situation with the oil market during the video report?

The oil market remained relatively stable during the time of the video, with WTI crude trading at $73.5 per barrel and Brent crude closing at $77 per barrel. The prices were not significantly impacted by the Middle East situation.

How did Indian ADRs perform in comparison to US market movements?

Indian ADRs had a mixed performance, with ICICI Bank ADR and Wipro ADR closing positively, while Infosys and HDFC Bank ADR experienced profit booking, showing that the positive sentiment from the US market did not fully translate to Indian ADRs.

What was the result of the RBI's MPC meeting as discussed in the video?

The RBI kept the interest rates unchanged as expected but shifted its stance from 'withdrawal of accommodation' to 'neutral,' indicating that it now prioritizes both inflation control and growth equally.

What were the FII (Foreign Institutional Investors) and DII (Domestic Institutional Investors) activities mentioned in the script?

FIIs were net sellers for the eighth consecutive day, selling approximately 4,560 crore rupees in the cash market, while DIIs were net buyers for the twelfth consecutive day, buying approximately 3,500 crore rupees.

What is the significance of the TCS Q2 quarterly results mentioned in the script?

TCS is expected to release its Q2 quarterly results after the market closes, with an anticipated increase of 2.7% in revenue, 4% in EBIT, and 4.9% in net profit. The stock performance could be affected depending on whether these expectations are met.

What technical pattern did Nifty form according to the script, and what does it indicate?

Nifty formed a small bearish candlestick pattern with a long upper shadow, indicating selling pressure at higher levels. Despite showing a higher high and higher low formation for the first time in eight sessions, it signals potential resistance below the 50-day moving average.

What levels are critical for Nifty and Bank Nifty according to the weekly options data mentioned in the script?

For Nifty, the critical support levels are at 24,800 and 24,500, while resistance is expected between 25,200 and 25,300. For Bank Nifty, the short-term hurdle is between 51,500 to 51,750, with support at 151,000.