Trade Setup for Wednesday 22 March: Stock Market News

 

Trade setup for Wednesday 22 March 2023– Good morning and welcome to the morning reports, the top things to know before the stock market opens today

Asian stock markets are trading higher on Wednesday, as investors are awaiting the US Fed interest rate decision after the recent banking crisis. The key Asian stock market indexes Nikkei, Hang Seng, and Shanghai are trading higher by 1.89 percent, 2.21 percent, and 0.45 percent respectively. SGX Nifty is trading almost flat up by 2 points or 0.01 percent at 17146 levels.

The indication getting from the Asian and other global markets is positive. The Indian stock market indexes are likely to open in green and would trade in positive territory today.

 

U.S. and European stock market indexes update

 

The US stock markets extended their previous session gains on Tuesday, as a wild rally in First Republic Bank signaled easing worries about the further banking crisis. The share of First Republic Bank jumped 30% amid reports that the bank is looking for various options including the sale of parts of its business if it faces a liquidity problem. 

Meanwhile, Fed Chair Jerome Powell and his colleagues would face one of the toughest calls in years in its two-Day Fed monetary policy outcome which is due later in the day. Other than banking and financial stocks, Energy and consumer discretionary stock also rallied on Tuesday. The US stock market indexes Dow Jones and S&P 500 gained 0.98 percent and 1.30 percent respectively while Nasdaq was up by 1.58 percent on Tuesday.

European stock market indexes closed higher on Tuesday, as the recent banking crisis in the US and Europe eased. The sentiments were boosted after UBS’s takeover of Swiss lender Credit Suisse. Investors’ focus now shifted to the US Fed and BoE interest rate decision, which are due later this week. All major sectoral indices closed higher on Tuesday led by Banking and Finance and Insurance sectors. 

Credit Suisse shares were choppy on Tuesday and closed higher by over 3 % while UBS was up by 12%. The pan-European Stoxx 600 gained 1.3% on Tuesday. The key European stock market indexes FTSE and DAX gained 1.76% and 1.72% respectively while CAC was up by 1.40% on Tuesday.

 

Indian stock market updates

 

Indian stock market indexes closed strong on Tuesday amid positive global cues. The sentiments were upbeat due to a rally in the banking and financial stocks after the banking crisis eased in US and Europe. 

The market breadth was very positive with an advance-decline indicating a ratio of 2:1 at the close. Foreign investors were the net seller in the Indian equity markets, they offloaded Rs 1454.63 crore while DIIs were the net buyers they bought Rs 1946.06 crore on Tuesday.

 

News you should read before the trade setup for today 22 March

 

According to the RBI’s monthly bulletin published on Tuesday, India’s retail inflation is expected to range tightly between 5% and 5.6% for FY24, if the country successfully manages to deal with the EL Nino effect and global uncertainties.

The analyst of the Reserve Bank of India (RBI) are optimistic about the outlook for the Indian economy “whatever the odds” and expect it to maintain the pace it has shown in 2022-23. According to the RBI monthly Bulletin, India would not slow down unlike the global economy – it would continue to maintain the pace of expansion achieved in 2022-23. 

The Economic Survey for 2022-23 had pegged next year’s growth rate at 6.5 percent, while the RBI’s analysts forecast for the 2023-24 GDP growth rate is 6.4 percent. Meanwhile, most private sector economists’ estimates are lower than 6 percent.

 

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Happy Investing!!

Editor’s Desk