Stock Markets on edge ahead of Powell’s Jackson Hole speech

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Stock markets on edge ahead of Jackson Hole event

By S Jha

New Delhi, August 23: The benchmark indices may open lower tracking weak global cues. The Nasdaq cracked by 1.7 per cent overnight ahead of a key event.

The US Federal Reserve chief Jerome Powell will deliver his Jackson Hole speech tonight. Traders will seek cues from his speech on the rate cut trajectory.

Dow Jones and Nasdaq ended lower to mark a disruption in the ‘Return Rally’. The equity markets had been gaining for past few days.

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The minutes of the US Fed meeting had boosted confidence of traders for imminent rate cut. There is a near consensus that the Fed will cut the rate, at least by 0.25 percentage next month.

Yet, Powell’s speech is being awaited. The Indian bourses may turn edgy since the outcome of the speech will only be known late tonight.

But the banking stocks in yesterday’s session showed resilience. The lead was taken by the ICICI Bank. The IndusInd Bank and the Axis Bank also showed strength on the street.

Telecom was the top gainer on the street. The Bharti Airtel and the Bharti Infra trended with decent gains.

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Tejas Networks was also among the gainer. The telecom sector is buzzing on the street for the past few days.

There is suggestion from the street that the solar theme may be staging a comeback. IREDA was trending yesterday. There were gains in the counters of PFC and REC also.

Inox Wind and Inox Renewable Energy also gained firmly on the street. The twins from the same group had been trending for the past few days.

Nifty closed above a crucial level of 24800 in yesterday’s session. Market participants claim that the index is in the uptrend.

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The 50-share index will need to defend 24780-90 level further march ahead. Bank Nifty faced resistance at 51039 in yesterday’s session. The index was not able to clear the resistance throughout the day.

Market participants advise caution on the street ahead of a key event in the US. The impact of Powell’s speech will be seen only in the Monday’s session.

Disclaimer: This article makes no recommendation for buy or sell of shares of any company.

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