Markets brace for Fed decision, while silver soars, rupee rallies, Nifty eyes support at 25,728 level

Major stock indexes fell on Tuesday while the dollar and Treasury yields rose ahead of an expected Federal Reserve rate cut, though investors braced for potentially hawkish commentary from policymakers. Markets will also closely monitor any balance sheet adjustments.

Two weeks of Wall Street gains preceded the meeting, fuelled by optimism over lower rates and increased liquidity.

The Labour Department reported U.S. job openings edged up to 7.67 million in October from 7.658 million in September.

Investors are also watching earnings from Oracle and Broadcom this week for signals about AI-sector momentum.

Treasury yields and the dollar strengthened following data showing modest growth in job openings but subdued hiring.

Spot silver reached $60 per ounce for the first time, driven by supply deficits and rising demand.

During yesterday’s weekly expiry session, Nifty witnessed heightened volatility and ended the day at 25,839, down 120 points.

The Indian Rupee has demonstrated a significant rebound, overcoming a two-day decline and appreciating by 19 paise to emerge as the top-performing currency among its Asian peers. The unwinding of dollar long positions drove the appreciation. Further supporting the rupee were lower global crude oil prices and stronger regional currencies.

Immediate resistance is placed in the 25,950–26,000 zone, followed by a strong hurdle at 26,202. On the downside, yesterday’s low of 25,728 will act as the key near-term support level.

Indian equity indices are expected to start slightly weaker today, with GIFT Nifty futures trading about 50 points below the previous Nifty close as investors await the U.S. Federal Reserve’s rate decision later tonight.

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Source : HDFC Securities Prime Research