India stocks steady as rare Fed dissent offsets technical breakout
Indian equities opened flat on Thursday as an unprecedented level of early-tenure dissent at the US Federal Reserve clouded the global outlook, though domestic technical indicators pointed to further upside.
Indian benchmark indices opened flat on Thursday as investors digested a volatile global reaction to the US Federal Reserve's decision to hold interest rates steady. At 9:15 IST, the Nifty 50 was unchanged at 24,249.55 and the BSE Sensex slipped 0.02% to 77,638.86.
The muted open masked significant turbulence in global macroeconomic expectations. Three of the 12 Fed committee members dissented from the rate decision, marking the highest level of early-tenure dissent for a US central bank chair since the 1970s. Fed Chair Kevin Warsh reiterated a strict commitment to taming inflation, triggering overnight declines in US equities and the dollar, and spurring volatile trading across Asian markets.
Inflationary pressures remain a focal point for regional investors. Brent crude pulled back 1.4% to around $90 per barrel after a sharp 7.9% surge in the previous session. The retreat in oil prices provided some relief to Indian markets, which are highly sensitive to energy import costs, though underlying geopolitical risks keep broader inflation concerns elevated.
Broadly, the Indian market showed underlying weakness at the open. Eleven of the 16 major sectoral indices traded in negative territory, while broader mid-cap and small-cap indices each declined 0.3%.
Despite the flat open, technical analysts see the recent downward correction ending. Analyst Nagaraj Shetti noted the Nifty 50 surged 265 points on Wednesday, forming a long bull candle and breaking through crucial overhead resistance at the 24,000 to 24,200 levels. The index has left two unfilled upside gaps over the last four sessions, a pattern that typically signals strong buying momentum.
Shetti projects the next upside targets for the Nifty 50 at the 24,500 to 24,600 range, with immediate support established at 24,100. Within this bullish structure, Shetti identified Aether Industries and Supreme Industries as short-term buying opportunities. Aether Industries is approaching a decisive breakout past a down-sloping trendline at the ₹3,500-₹3,520 level, supported by expanding volume and positive relative strength. Supreme Industries is similarly positioned at the edge of a rangebound breakout following a recent downward correction.
