Indian share market is set to open a tad higher on Thursday, tracking a positive trend at Gift Nifty even as global equities fell after the U.S. Federal Reserve maintained a status quo in its latest policy meeting. Asian stocks were trading lower today following a negative closing at Wall Street overnight as investors digested Fed's policy decision. On the other hand, the Gift Nifty futures were trading 42 points, or 0.18%, higher at 23,155.50 mark.

In the absence of any major development on the global front, investors will keep focus on Q3 earnings along with Economic Survey and Union Budget scheduled this weekend. Investors will react to earnings numbers of Tata Motors, Bajaj Finance, Voltas, and Raymond, while they will keep a close eye on Q3 results of Larsen & Toubro, Adani Enterprises, Adani Ports and SEZ, Bajaj Finserv, GAIL (India), and Bank of Baroda.

U.S. stocks end lower as Fed hits the pause button

In the overnight trade, Wall Street ended lower after the U.S. Federal Reserve kept key interest rate steady on Wednesday, maintaining it in the range of 4.25%-4.5%. The policy decision, the first since Donald Trump took charge as the 47th U.S. President, was largely in line with street expectations as inflation remained elevated, while unemployment remains low. In the December meeting, the Fed had cut the benchmark interest rate by 25 basis points (bps), while it reduced the borrowing rate by a total of one full percentage point in the past three months. Following the Fed policy announcement, all three major U.S. benchmark indices closed lower, with the S&P 500, the Nasdaq Composite, and he Dow Jones Industrial Average falling 0.48%, 0.54%, and 0.31% respectively.

Asian stocks fall after Fed policy decision

The equity market in Asia Pacific region edged lower on Thursday, tracking negative closing at Wall Street, as investors weighed up the Federal Reserve’s policy decision. Many of the region’s biggest equity markets — including those in Hong Kong, mainland China and South Korea — are closed for the Lunar New Year holiday. The stock market in Japan opened lower, while Australia’s ASX200 closed marginally higher. Many of the region’s major market, including those in Hong Kong, mainland China and South Korea, remained closed for the Lunar New Year holiday.

Indian equities continue pullback rally

The domestic benchmark indices, Sensex and Nifty, ended higher for the second straight session on Wednesday. The 30-share Sensex jumped 631.55 points, or 0.83%, to settle at 76,532.96, and the Nifty50 rose 205.85 points, or 0.90%, to close at 23,163.10. Among the sectors, Defence, IT, Media, and Realty indices climbed over 2%. On January 29, FIIs sold shares worth Rs 2,586.43 crore, while DIIs bought shares worth Rs 1,792.71 crore.

Technical outlook

The Nifty reclaimed 23,000 level in the previous session, which is anticipated to serve as a protective barrier against any intraday fluctuations acting as a cushioning zone, followed by the sacrosanct support of 22,900-22,800, says Osho Krishnan, Sr. Analyst, Technical & Derivatives of - Angel One.

“On the upside, the 20 DEMA, which aligns with the neckline of the prior breakdown at 23,350-23,400, establishes a crucial resistance point. This level will be essential to monitor in the coming days, as it may determine the index's ability to break out or face further challenges. Caution is advised as we navigate through this market landscape,” he adds.

Shrikant Chouhan, Head Equity Research, Kotak Securities, believes that it if the market stays above 23,000/76,000, the pullback formation is likely to continue, and on the upside, the market could bounce back to the 20-day SMA (Simple Moving Average) at 23,350/77,000 and 23,400/77,200. However, if it falls below 23,000/76,000, the sentiment could change. In that case, traders may prefer to exit their long positions.

Stocks to watch

Q3 earnings: AAVAS Financiers, Astral, Bharat Electronics, Biocon, CARE Ratings, Coromandel International, Dabur India, Indegene, Jindal Steel & Power, Kalyan Jewellers India, Dr Lal PathLabs, Navin Fluorine International, Phoenix Mills, Prestige Estates Projects, Larsen & Toubro, Adani Enterprises, Adani Ports and Special Economic Zone, Bajaj Finserv, Shree Cement, GAIL (India), Bank of Baroda, PB Fintech and Waaree Energies will release their earnings report today.

Infosys: The IT heavyweight has expanded its partnership with Siemens AG to accelerate its digital learning initiatives using generative AI.

Afcons Infrastructure: The company has secured a project worth Rs 1,283 crore from Hindustan Gateway Container Terminal Kandla.

GR Infraprojects: The company has emerged as the L-1 bidder for a project worth Rs 262.3 crore from Western Railways.

Sona BLW Precision Forgings (Sona Comstar): The company has signed an MoU with The ePlane Company to develop powertrains for eVTOLs and drones.  

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