Trade Setup for Tuesday 20 Sept: Stock Market News
Trade setup for Tuesday 20 Sept– Good morning and welcome to the morning reports, the top things to know before the stock market opens today
Asian stock market indexes are trading higher on Tuesday tracking the positive cues from the US markets overnight. Nikkei and Hang Seng are trading higher by 0.35 percent and 1.01 percent respectively while Shanghai is trading higher by 0.47 percent at 7.25 am IST. SGX Nifty is also trading higher by 131 points or 0.75 percent at 17755 levels.
The global cues are positive, as per the indication getting from the Asian markets, the Indian stock markets are likely to open a gap-up today. Nifty may open around 17750 levels.
The US and European market indexes update
The key US stock market indexes closed higher on Monday and bond yields hit their highest level in more than a decade ahead of the Fed’s interest-rate decision which is due on Wednesday. The major US indexes gained in the last hour, as markets fully priced in at least a 75 bps rise in rates at Fed’s Sept. 21 policy meeting.
The focus will be on new economic projections, which are due after the Fed’s policy statement. The US stock market indexes, Dow Jones and S&P 500 gained 0.64 percent and 0.69 percent respectively while Nasdaq was up by 0.76 percent on Monday.
European stock market indexes recovered most of their early losses on Monday and closed flat ahead of the FOMC meeting outcome. The U.K.’s FTSE was closed Monday to mark the funeral of Queen Elizabeth II. Investors remained cautious, as several economic indicators prompted a large interest rate hike by the Federal Reserve which is due on Wednesday. The key European stock market index CAC closed lower by 0.26 percent whereas DAX gained 0.49 percent on Monday.
Indian stock market updates
It was a cautious start for the Indian equity markets on the first day of the week amid weak global cues. Indian markets made a modest gain on Monday, Sensex and Nifty closed higher by 0.51 percent and 0.52 percent respectively. The market breadth was almost negative on Monday. FIIs were the net buyers, they bought Rs 312.31 crore while DIIs sold Rs 94.68 crore in the equity cash segment.
News you should read before the trade setup for today 20 Sept
According to the India Ratings, the country’s current account deficit (CAD) may hit a 36-quarter high in the June quarter. CAD in the June quarter may come in at 3.4 percent of GDP, or $28.4 billion, the domestic rating agency said on Monday. This is compared to a 0.9 percent surplus in the same period last year. In Q1 FY22, the CAD was $6.6 billion or 0.9 percent of GDP when India was hit by the second wave of the pandemic.
The domestic rating agency India Rating and Research said that bank deposit rates are likely to go up further as credit growth is outpacing deposit growth by a wide margin. The system-level credit growth stood at 15.5 percent against 9.5 percent on the deposit growth, as of August 26
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