Market Savera - 03/ 01/ 25

Stock Market Updates

Daily Morning Commentary

US Stocks Dip on Rising Yields, Strong Dollar, and Economic Slowdown

All three major U.S. stocks ended their first session of new year in negative territory, though they managed to recover somewhat from their session lows. Wall Street faced multiple headwinds: Treasury yields climbed to seven-month highs, the dollar reached its strongest level in two years, and crude oil prices advanced amid rising options volatility.

The market decline was led by technology giants Apple and Tesla, whose losses set a bearish tone for the new year. Adding to the pressure, the Atlanta Federal Reserve revised its fourth-quarter GDP estimates downward, indicating that the U.S. economy experienced further cooling in the final months of 2024.

Expectations of slower interest rate cuts and uncertainty over policies under incoming President Donald Trump also chipped away at sentiment.

The People’s Bank of China plans to cut interest rates further in 2025, as it brings monetary policy more in line with traditional policies in the U.S. and Europe. A shift in the PBOC’s policy stance comes as China grapples with sluggish economic growth, with lower interest rates and steady liquidity measures having so far provided little support to the economy.

Bulls Roar Back as Indian markets Surge nearly 2% Amid Strong Short-Covering Rally

Bulls staged a powerful comeback on Dalal Street yesterday, with the Nifty surging 445 points (1.88%) to close at 24,188 - marking its strongest single-day gain since November 22, 2024, in percentage terms.

FPIs have started covering their short positions in index futures as we expected and pending shorts gives this rally some more legs to go.

The Nifty has demonstrated remarkable strength, rallying over 750 points from its recent low of 23,460. The index's move above 24,178 has pushed it beyond its 20-day SMA, while establishing a higher top and higher bottom formation on the daily chart - signalling a potential trend reversal.

After a stellar 450 points rise – futures are signalling a 100 points fall, thought it will attempt a recovery post soft opening. The previous resistance at 23,900 now serves as support, with the next resistance anticipated around 24,400.