Markets are still digesting the FOMC policy. Actually, the overall positioning was for a 25 basis point cut, but since we got a 50 basis point cut, cross-asset equations needed rebalancing. This resulted in a significant up day in the U.S. markets. In the U.S., we were watching Thursday’s session closely because it was a key cycle date. Therefore, yesterday’s low on all U.S. indices would be a very important level for the next few days. A break of that low on a closing basis would drag indices towards their supports. For the S&P, those supports stand at 5610 and 5475 on the downside.
“Similarly, for NIFTY today, the intraday low is a key date. Regardless of its value, it will be crucial for the coming days. As we discussed earlier, the U.S. markets will likely turn first, and other markets, including Indian markets, will follow. Until then, there’s little to anticipate for Indian markets.”
“The positive aspect is that volatility has picked up on the price fluctuation front.
However, this is not reflected accurately in the VIX index.
We still need the VIX to rise in the future. As broader markets underperform and private banks outperform, we should see a higher VIX.”
For NIFTY we need a higher high above 25800 and then a lower low below 25377 to complete current pattern additionally on time front Every third day from today until October 15 will be a significant day for NIFTY. The importance of these dates will become apparent as we continue to monitor the market.”
gann,insides 