Weak Start For D-Street? All Eyes On U.S. Fed Policy Decision : Decoding The Trade Set-Up

A Bizarre Morning Call: Greetings from Mumbai!

Broadcasting live from the CNBC TV 18 multilal Oswald studios in Mumbai, it's the Bizarre Morning Call! 🎶

Good morning, readers! Prashant here, joined by my dynamic colleagues Sonia and Nigel. And boy, do we have a morning filled with quirks and concerns from the global market!

The Fear Factor: Market Jitters and Mysterious Dive

So, let's dive in, shall we? The markets are in a bit of a tizzy - crude oil is doing a limbo, Go Air is doing financial acrobatics, and the SJX Nifty is tapping its toes hesitantly. Why, you ask? Well, the U.S markets did a little moonwalk backward last night. The S&P was down one and a quarter percent, and the NASDAQ took a graceful one percent bow. The root of this dance? The Regional Banks in the U.S did a dramatic drop, selling off by a whopping five percent. What's the culprit, you ask? No single trigger, no smoking gun. It's just momentum doing its cha-cha in the market.

Fed Frenzy: Risk Management on the Radar

Now, here's where it gets interesting. This market dance has caught the eye of the FED. They've got their risk management goggles on, making sure the financial sector doesn't break into a jitterbug. The consensus is a 25 basis point Fed rate hike. But hold your horses, the forward guidance might just have a little shimmy based on the market mood.

Technical Tango: Indicators in the Spotlight

Let's talk tech. The S&P 500 is giving us a triple momentum divergence at its highs, and that's a red flag. Meanwhile, the CBOE VIX, our volatility radar, is striking a triple momentum divergence at its lows. This rarely happens, so it's time to pay attention. Are we in for a market waltz with a slight correction and a rising VIX? That's the million-dollar question!

Strategizing in the Trading Arena: Timing is Everything

Now, before we go any further, remember, you don't have to swing at every pitch the market throws your way. It's about waiting for that perfect moment, that ideal pitch, to make your move. Just like in the world of football, where Arsenal's recent triumph against Chelsea brought immense joy to one of our own. Sometimes, it's about sitting back, enjoying the game, and waiting for the right moment to strike.

The Final Act: Market Predictions and Pointers

As we wrap up this morning call, keep your eyes peeled on that 18,250 mark for the Nifty. The bears are keeping a close watch. If that's breached, the 100 DMA might have to step in as the referee. The Nifty Bank, on the other hand, is eyeing its all-time high, just a smidge away. So, brace yourselves, folks. It's going to be a day of twists, turns, and perhaps a few surprises.

Remember, in this market rollercoaster, it's not about keeping up with every dip and rise. It's about finding that perfect rhythm and dancing to your own tune. So, let's embrace the bizarre, the unexpected, and make our moves when the time is just right!

Wishing you a day filled with profitable pirouettes and strategic salsa steps! 🕺💃