Markets are merely following an explosive rise in central bank assets
For the coming week, 9,000 will act as the key support level to hold the market and 9,450 and 9,600 will be the key resistance levels to watch out for, Gaurav Garg told Moneycontrol.
Sectorally, the action was seen in metals, IT, auto, banks, capital goods, and consumer durable stocks.
Experts are of the view that precious metal is likely to trade in a range as risk-on sentiment lift equities. The crucial support for India Gold is placed around 45300 levels, they say.
Allocation to emerging markets has room to fall further
In the coming truncated week we expect the index to consolidate in the broad range of 9000-7800 amid stock-specific action with elevated global volatility
Spot gold climbed 1.7% to $1,578.83 per ounce by 0116 GMT. The metal rose 3.7% on Monday, its highest percentage gain since June 2016.
MCX Gold prices are expected to be traded in the range of 38500-42400 and silver prices are expected to be traded in the range of 38800-43500 levels.
Amar Deo Singh of Angel Broking feels it could be a good buying opportunity for long term investors with valuations turning attractive
"Our pathetic, slow moving Federal Reserve, headed by Jay Powell, who raised rates too fast and lowered too late, should get our Fed Rate down to the levels of our competitor nations," Trump tweeted.
In their first remarks in the new year, heads of several regional Fed banks noted a strong job market, robust consumer spending and a rising optimism for a resolution to the trade tensions that had nicked growth in the second half of 2019.
The Fed has preferred to wait for an impact of previous rate cuts on the US economy.
From a hands-off approach to a gradual embrace, central banks are fighting a pitched battle to assert their digital monetary supremacy
Draghi and the ECB did a fine job in saving the Eurozone from disaster when few expected the central bank could do the job
Moneycontrol's Sakshi Batra does a 3-Point Analysis of what the rate cut indicates and what's the outlook on the US economy going forward.
A rate cut this week is baked in, but much depends on what Powell says about the future
"In a holiday-shortened week investors will focus on the next leg of corporate earnings. Auto companies will be in focus as the sector will report a picture of how festive demand has fared in October. The US Fed is expected to keep its interest rates steady when they meet (on Wednesday) based on the macro numbers.
In lowering the benchmark overnight lending rate to a range of 1.75% to 2.00% on a 7-3 vote, the Fed's policy-setting committee nodded to ongoing global risks and "weakened" business investment and exports.
On MCX, October gold futures traded 0.20 percent lower at around Rs 37,675 per 10 gram, down Rs 75. It has fallen more than Rs 2000 from last week's highs of Rs 39,885.
Since the early 1980s economic downturns have been triggered more by financial booms gone wrong than by monetary policy tightening to quell inflation flare-ups.
Production fell across the board in US manufacturing, with only rare bright spots, dropping 0.4 percent compared to June. The sector has fallen in four of the last six months and is down 1.5 percent so far this year, according to the data.
A 25 basis point rate cut is baked in, but it will have a long-term positive impact on the Indian economy and markets
The Fed’s stopping its balance sheet reduction programme will be positive for emerging markets
Gold is one of the best insurance for wealth managers from now on because the downside is limited from here and there can be a huge upside if the global economy slows down sharply
Markets are worried Fed Chairman Jerome Powell may withdraw the drug that propelled them to new highs.