Opening Bell - 05 / 02 / 25

Stock Market Updates

Opening Bell - Morning Commentary
Markets Pin Hopes on Quarterly Earnings Today
US equity markets finished higher on Wednesday, reversing modest losses at the open, with the S&P 500 gaining 0.4% and the Dow rising by 0.7%. The real estate and information technology sectors were among the top performers of the S&P 500.
The ADP employment survey for January showed that private employers added 183,000 jobs for the month, above expectations for 150,000 and above the December reading of 176,000. Friday will provide another update on labour-market conditions with the release of nonfarm payroll growth and the unemployment rate for January.
European markets were mostly higher following a eurozone inflation reading that was in line with expectations.
The Reserve Bank of India's upcoming Monetary Policy Committee meeting, led by Governor Malhotra, is likely to deliver a 25 basis point cut in the repo rate, though the decision hangs in delicate balance. Given the rupee's weakness against the dollar and mounting global uncertainties, the central bank might instead prioritize liquidity management and postpone any rate reduction until its April policy review.
Indian rupee touched fresh low yesterday in afternoon trade at 87.50 against the US dollar.
Index erased most of its morning gains yesterday as earnings reports did little to lift investor sentiments and ended with marginal losses. Seventeen blue-chip companies, including Bharti, ITC, State Bank of India, Hero MotoCorp, and Trent, will release their quarterly earnings today. Their performance against market expectations will set the tone for today's trading session.
The Nifty encountered resistance at the descending trendline connecting the September and December 2024 highs on the daily chart. However, this appears to be a temporary pause in the prevailing uptrend, as it continues to trade above its 50-day and 200-day exponential moving averages (DEMAs), currently placed at 23,664 and 23,620, respectively. A sustained move above 23,800 could propel the index towards the next resistance zone of 24,050-24,100. Conversely, the 23,500-23,600 range is expected to provide support.