GIFT Nifty hints a muted start. Here's trading setup for today

Domestic markets consolidated after making fresh highs and closed with losses as investors turned cautious ahead of the US Fed policy meeting outcome.

"A 25bps rate cut is already discounted and can lead to profit booking in the market. However, a 50bps rate cut by the Fed could bring some cheer to market sentiments. Also, Fed commentary will be important as it will give clarity on the quantum and duration of the rate cut cycle. We expect the market to remain volatile in the near term with rate-sensitive sectors in focus," said Siddhartha Khemka, Head - Research, Wealth Management, Motilal Oswal.

Here's breaking down the pre-market actions:

STATE OF THE MARKETS

Gift Nifty (Earlier SGX Nifty) signals a flat start.

Nifty futures on the Gift Nifty traded 6 pts higher at 25,407.

Tech View
The short-term trend of Nifty remains positive with range bound action. Any dips down to the support of 25,200-25,100 is expected to be a buying opportunity. A decisive up move above 25,500 levels could pull Nifty towards the higher targets, said Nagaraj Shetti of HDFC Securities.

India VIX
India VIX, which is a measure of the fear in the markets, rose 6.22% to settle at 13.37 levels.

US stocks
U.S. stocks closed with modest losses on Wednesday, pulling back from earlier highs after the Federal Reserve cut interest rates by 50 basis points—higher than many had anticipated—for its first reduction in over four years.

Trading was volatile. Before the Fed's announcement, the S&P 500 fluctuated between slight gains and losses, rising as much as 1% post-announcement before retracing those gains and ultimately finishing lower. Both the Dow and S&P 500 reached intraday peaks before declining.

Global Markets

• S&P 500 futures rose 0.5% as of 9:46 a.m. Tokyo time
• Japan’s Topix rose 2%
• Australia’s S&P/ASX 200 rose 0.2%
• Euro Stoxx 50 futures rose 0.7%

Forex News

• The euro fell 0.2% to $1.1099
• The Japanese yen fell 0.7% to 143.29 per dollar
• The offshore yuan fell 0.1% to 7.1041 per dollar

Oil falls
Oil prices fell in Asian trading on Thursday after a larger-than-expected Federal Reserve interest rate cut sparked concerns about the U.S. economy.

Brent crude futures for November fell 34 cents, or 0.46%, to $73.31 a barrel by 0015 GMT, while WTI crude futures for October declined to $70.49 a barrel, down 42 cents or 0.59%.

Stocks in F&O ban today

1) Balrampur Chini Mills

2) Hindustan Copper

3) GNFC

4) RBL Bank

5) PNB

6) Bandhan Bank

7) Biocon

8) Birlasoft

9) LIC Housing Finance

10) Granules

Securities in the ban period under the F&O segment include companies in which the security has crossed 95% of the market-wide position limit

FII/DII action
Foreign portfolio investors turned net buyers at Rs 1154 crore on Wednesday. DIIs bought shares worth Rs 152 crore.

Rupee
The rupee declined by 13 paise to settle at 83.66 against the US dollar on Wednesday ahead of the key rate decision by the US Fed.

FII data
The net long of FIIs increased from Rs 2.2 lakh crore on Tuesday to Rs 2.37 lakh crore on Wednesday.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)