Wall Street seen correction over 1% as worries over regional banks continues, more regional banks like FRC could be in-line for some financial trouble.
US Fed decision tonight, fed fund rate seeing probability of 87.7% probability of 25-bps rate hike. ADP Non-farm employment change & ISM services PMI.
Crude oil down by 5% overnight as fresh concern on economic worries and supply exceeding demand putting pressure.
VIX @ 11.90: expect to increase further towards 14 level.
Approach on Indices: Indices are in overbought zone, going into US fed event today, we expect volatility and move of over 1% – 2% tomorrow on reaction to decision & commentary. Going into trade today – market cues are mixed.
Market View: Today trade will be in anticipation and positioning ahead of event outcome tomorrow. We see indices near upper-end of the range and time to sell-on-rise and we believe market will give small and fast correction in this zig-zag move.
SGX Nifty @ 18143 down 77.50 points at 8:30 AM