Trade Setup for Thursday: Stock Market Today (21 March 2024)

 

Trade Setup for Thursday, 21 March 2024: Good morning, and welcome to the morning reports, the top things to know ahead of market opening and Trade setup today.

 

Asian Stock Market Indexes

 

Asian stock market indexes are trading higher on Thursday tracking positive cues from Wall Street overnight, as the US central bank kept the interest rate unchanged and suggested three rate cuts this year. Japan’s Nikkei is trading at a fresh all-time high, up 1.18%. Investors are now looking for Japan’s trade data and the Jibun Bank flash PMI data is later in the day. 

Australia’s S&P ASX 200 index is gaining 0.51% after Judo Bank flash PMI data showed that the business activity has expanded in March, compared to February. South Korea’s Kospi index is trading higher by 1.50%, at its eleven-month high. Shanghai and Hang Seng indexes are trading higher by 0.13% and 1.75% respectively. The Straits Times and Taiwan, are also trading in the positive territory at 7 am IST.

 

U.S. Stock Market Indexes Updates

 

The US stock market indexes closed higher on Wednesday as the Federal Reserve kept the interest rate unchanged as widely expected. The central bank has signaled three rate cuts this year, easing fears that the recent hotter-than-expected inflation data could reduce rate cuts this year.

The S&P 500 index closed above 5200 for the first time, up by 46.11 points or 0.89% at 5224.62. The Dow Jones Industrial Average (DJIA) closed higher by 401.37 points or 1.01% and settled at 39512.13, while the tech-heavy Nasdaq Composite index jumped 202.62 points or 1.25% and closed at 16369.41.

The probability of cutting the interest rate of 25 bps in June has increased to 75% from 64% shown last week, according to the CME FedWatch tool. As per prior projections, the Fed’s signal of three interest rate cuts in 2024 has pushed the Treasury yields lower. The yields on 10-year Treasury notes eased from 4.298% to 4.276% on Wednesday.

 

European Stock Market Indexes Updates

 

European stock market indexes closed mixed on Wednesday ahead of the US Fed interest rate decision due later in the day. On the economic front, the UK’s inflation data came lower than expected in February, much cooler than January’s reading.

On the corporate front, the shares of luxury goods brands LVMH, Christian Dior, and Burberry fell between 1% and 3%, after Kering issued a rare profit warning due to a decline in Asia sales. The share price of Kering fell more than 11% on Wednesday.

The pan-European Stoxx 600 index closed flat, with household goods shares falling, while utilities shares gained. The key European stock market index, CAC closed lower by 0.49%, while DAX ended higher by 0.15%. The UK’s FTSE closed flat to the negative ahead of the Bank of England interest rate decision due on Thursday.

 

Indian stock markets

 

Indian stock market indexes closed marginally higher on Wednesday amid volatility. The domestic equity benchmarks opened slightly higher following gains from US and Asian market peers and traded volatile. Traders remain cautious ahead of the US Federal Reserve’s interest rate decision and prefer to book profit at every high.

The market breadth was slight on the seller’s side with the advance decline indicating a 2:3 ratio at the close. FIIs were the net sellers and DIIs were the net buyers in the equity cash segments. FIIs offloaded shares worth Rs 2599.19 crore, while DII acquired shares worth Rs 2667.52 crore.

 

Stock Market Today

 

The cues from the US and Asian markets are positive. Gift Nifty closed 128 points higher on Wednesday and trading 40 points up at 22081. The indications from global markets and Gift Nifty are very strong today. Indian stock market indexes will open a gap-up today and are likely to trade positively throughout the day.

 

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Also, read  Prediction Tomorrow: What to Expect from Nifty and Bank Nifty on March 21st

 

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Editor’s Desk