Mint ·
Economy, business and finance
Stock Market prediction tomorrow: Sensex, Nifty outlook for Fri | Kospi, Taiwan Index, Nikkei cues to watch
The Indian stock market saw modest gains despite the US Federal Reserve's rate hike, with the Nifty 50 closing up 0.23%. However, concerns arose over potential selling by overseas investors, and both key indices remained below Tuesday's highs, marking a potential sixth week of losses.
The Indian stock market closed Thursday’s trade on 17 September with modest gains, as traders shrugged off the US Federal Reserve’s rate hike, which had been largely priced in.
While equities held on to their gains, the Indian rupee extended its losses to multi-week lows amid growing concerns that overseas investors could accelerate selling following the Fed’s move.
Although the key benchmark indices remained higher for the second consecutive session, they were still below Tuesday’s highs. For the week, both indices are down more than 0.40%. If they close the week lower, it would mark their sixth consecutive week of losses.
The Nifty 50 wrapped up the session at 23,270, up 0.23% from the previous close, while the Sensex gained 0.10% to 74,413. The broader market, however, outperformed the frontline indices, with the Nifty Midcap 100 index surging 1% and the Nifty Smallcap 100 rallying 0.76%.
Most sectors closed in the green, led by pharma, realty, media, auto, metals, and chemicals. On the other hand, banks were the only major sector to lag.
The gains in Indian equities came a day after the Federal Reserve raised interest rates by a quarter percentage point, bringing the federal funds rate to a range of 3.75% to 4%. Policymakers also penciled in an additional rate hike later this year.
The decision was widely anticipated by markets amid growing inflationary risks, robust economic activity, and a stable labor market. Policymakers also saw little evidence that inflation was on track to return to the Fed’s 2% target, with 16 Fed officials projecting another rate hike this year.
Meanwhile, in the commodity market, crude oil extended its decline for the second consecutive day following reports that Saudi Arabia plans to restore roughly half the capacity of its East-West pipeline within days and bring it back to full operation within six weeks.
Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, said the Nifty is approaching resistance at 23,300. A sustained break above this level could extend the recovery towards 23,500, while support remains at 23,200 and 23,000.
Radhakrishnan said the market is likely to remain in consolidation mode until the Nifty decisively clears 23,300.
Vipin Kumar, AVP-Research at Globe Capital Market said the Nifty index continued its bounce-back rally and settled on a flat-to-positive note with marginal gains. However, he said the positional chart structure remains negative, with multiple resistance levels around the 23,450–23,600 spot range.
Going forward, Kumar said they maintain their sell-on-rise trading approach as long as the index trades below this resistance zone. On the downside, he said the 23,100–23,000 range will act as an immediate support zone.
In Asia, Japan’s Nikkei 225 index gained 0.3% to 64,136.25. South Korea’s Kospi edged down less than 0.1% to 6,715.41.
Hong Kong’s Hang Seng fell 0.4% to 24,604.29, while the Shanghai Composite index lost 0.4% to 3,875.60. Australia’s S&P/ASX 200 climbed 0.4% to 8,732.40. Taiwan’s Taiex jumped 1%, while India’s Sensex edged up 0.1%.
Vipin Kumar said the Nikkei continued its sideways journey within a downward-sloping channel formation. Moving forward, he said they expect this sideways movement to continue with a negative bias as long as the index trades within the channel, facing immediate resistance around 65,400 and support around 62,500 spot levels.
In line with its Asian peer, the Nikkei, Kumar said the KOSPI traded sideways and settled with marginal gains. He said a breakout and sustained hold above 6,800 could push the index towards 7,000, followed by 7,200 levels. Conversely, Kumar said a decisive fall below 6,550 could drag it towards 6,200 levels in the near term.
On the Dow Jones Industrial Average, Kumar said the index tested its six-month EMA support on daily charts and settled a tad above it. Looking ahead, he said a decisive fall below 51,100 would be a negative development that could drag it towards the 50,000–49,800 spot levels in the near term.
Conversely, Kumar said sustained trading above 52,200 spot levels could push it back towards the upper band of the past four-month-long congestion range.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Ksheera Sagar has been working as a Market Research Analyst at LiveMint for the past four years, covering stocks, commodities, and broader financial markets. In this role, he closely tracks daily market movements, corporate earnings, sector trends, and macroeconomic developments. <br><br> He has over a decade of experience in the financial services industry and has previously worked with multiple organisations, including global investment bank J.P. Morgan, bringing strong research experience into the newsroom. <br><br> During his career, he has gained extensive exposure to equity research, market analysis, and financial data interpretation, strengthening his expertise across asset classes and market cycles. <br><br> He is known for his data-driven analysis and crisp, listicle-style market stories that break down complex financial developments across key markets for a wide audience. His strong research skills enable him to write detailed and insightful stories on stocks and sectors, focusing on the underlying factors driving market movements. <br><br> His work combines quantitative insights with clear storytelling, presenting financial developments in a clear and structured manner. Moreover, he enjoys writing multibagger and listicle-style copies. Outside of work, Ksheera enjoys playing the piano and exploring new places. He has a keen interest in travel, music, and continuously learning about global markets and economic trends.
Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.