Wall Street had another positive session after CPI came @ 4.0% Vs estimate of 4.1%. U.S. Core CPI rises to 5.3% in May lowest since November 2021.
US Fed meeting tonight is now factoring in 95% probability of pause after CPI & Core CPI data came in-line with estimate. US Fed chair Jerome Powell post policy press conference will be key event.
FMCG & defensives stocks continue to lead the Indices higher as Banks & IT stocks see some profit booking. Mid-cap & Small-cap stocks continue to outperform.
VIX @ 11.11: surprisingly low, any increase in VIX needs to watch-out.
Approach on Indices: With Nifty is less than 170 points away from lifetime high at 18887, expected to test. Banknifty likely to test 44965 as Banknifty likely to react to US Fed news. Indices remain in uptrend till Nifty is above 18458 & Banknifty above 43552.
Market View: We are going into event with indices near all time high, even if indices move higher, we would continue to reduce exposure on higher level. In near term – even if US Fed decision comes favourable in-line with market expectation – we expect profit booking.
SGX Nifty @ 18830.50 up 45.50 points at 8:35 AM