Setting Stage For Thursday: Nifty’s Outlook, Weekly Expiry, Fed Outcome & More

By Malvika Gurung — The US Federal Reserve will release its two-day monetary policy meet outcome at 11:30 pm Indian time on Wednesday and markets globally will react to it and cues on the length and size of further policy tightening to tame the soaring inflationary pressures.

The domestic market will take signals from the Fed’s outcome in early trades on Thursday, while the scheduled weekly expiry will add volatility to the session.

Ajit Mishra of Religare Broking sees the 17,400-17,500 range to act as a cushion in , while the 17,900-18,000 range could lead to selling pressure.

Markets await the Fed Chair Jerome Powell’s news conference at 2:30 pm EDT to elaborate on the latest policy decision, updated economic projections from policymakers, which would signal the tone and size of future interest rate hikes, inflation projection and the likeliness of further pain inflicted on the U.S. economy.

Major indices on Wall Street opened higher on Wednesday ahead of the Fed’s likely 75 bps rate hike, with the trading 0.5% higher, up 0.57% and gaining 0.47% at the time of writing.

The US 2-year Treasury yields hit a record 4% for the first time since 2007 on Wednesday, while oil tanked ahead of the Fed’s policy outcome.

Futures slid past 1% to $89.7/barrel and plunged 1.15% to $83/barrel.

Read Also: Fed’s Policy Outcome & Powell’s News Conference: Key Timings & What to Expect?

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