By Anand James
We had gone in last week expecting HDFC Bank to embark on the next leg of extended declines, aiming 1370-20. However, given the slow down in downside momentum, we are weighing the prospects of a recovery attempt being made while inside the 1525-1460 region, or an outright recovery and push above 1570 which could also serve to lessen the heavy bearish bias the stock has been bearing lately. That said, the prospects of a vertical rise look low, but whichever way this stock swings, it can have a bearing on the prospects of Bank Nifty, given the 29% weightage it has in Bank Nifty index. Meanwhile, more than 50% of Bank Nifty constituents are still above 50DMA, suggesting that the index could find new leaders. Also the Index as such appears due for a bounce back, but we would be first interested in initiating shorts on pull back to 45,000. However, we feel that, after due consolidation, the latter part of October could see a breakout beyond thi…
The yield on 10-year US treasury bills breached the psychologically crucial 5% mark on Monday – the highest since July 2007 – bringing back memories of the 2007-08 financial crises. The spike came on the back of fears that the US Federal Reserve will keep rates higher for a longer period.
Last week, US Federal Reserve Chairman Jerome Powell said inflation in the US continues to be too high and bringing it down to the Fed’s 2% target level will likely require a slower-growing economy and job market. His hawkish comments came against market expectations that the rate hikes had reached an end.
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Economists believe that there will an adverse impact of US yields will be felt in the Indian markets as well. “There would be an upward pressure on Indian bond yields since the unfavourable interest rate differential would mean reduced inflows into non-US bond markets,” said Abheek Barua, ch…