NIFTY : All is "Hawkish" and dory!

The much awaited first FED meeting of 2024 comes and goes. It produced more cheer and a dovish input that was expected last summer.

We were expecting more than 6 cuts now we are pricing mere 3. FED rises Growth, Rises Inflation forecasts, keeps three cuts. Markets cheer. That brings the question why did markets more so the equity move higher, USD lower. Was there a concern that FED would say two cuts only instead of 3.

The nothing "New" has propelled more than anything that is known. Despite dash of hawkish inputs, markets do dovish merry.

The confluence of DXY above 233 DMA while Euro near the 233 DMA, gives way to Euro Sharp rally and USD piercing down below the 233 DMA. Looks set for 1.1000 plus on the cards.

Gold moves past 2200 and looks higher for longer. Silver does the second fiddling. Yields however, nominal down.

FED looks to have moved from something should break to nothing should break. That is huge break for the asset markets. Welcome to the Election year.

On the long side EUR and AUD looks healthy, while USDJPY and USDCAD looks heavy.

For our markets the move below 21780 will prove to be a trap, the numb shorting than nimble longs will prove. The ascending trendline and the horizontal line does the trick. A bull candle past 22150 opens for more gains, while a close above 22230 we re-start the upmove.

Looks like an open of near 100 plus points that puts 21950. Buying dips 21900 area with stops 21820 for 22150 better option.