Opening Bell - Morning Commentary

Rate Cut Optimism Lifts U.S. Markets as Retail Stocks Shine

American stocks rose substantially on Tuesday, with the Nasdaq recovering from an early decline to join the Dow and S&P 500 in positive territory.

Alphabet surged nearly 3% on reports that Meta may adopt its AI chips, boosting sentiment around its Gemini platform. Nvidia and AMD fell 3% and 4% respectively, amid competitive concerns.

Weaker-than-expected retail sales and producer price data fueled expectations of continued Fed rate cuts, driving a multi-day equity rally.

Retailers outperformed - Kohl's jumped over 40% and Abercrombie 18% after beating profit expectations and raising guidance, while Best Buy gained 5%.

The rally reflected growing optimism about lower rates, fueled by dovish Fed commentary and recent economic data. Markets now price in an 80.2% probability of a 25-basis-point December rate cut, up sharply from 43.4% last week.

Asian stocks rose today, following Wall Street higher as weaker U.S. economic data reinforced expectations of a Federal Reserve rate cut next month.

Oil prices fell over 1% on Tuesday after Ukraine suggested intensive U.S. diplomatic efforts to end the war with Russia may be progressing.

Natural gas plunged nearly 6% on forecasts of milder winter weather and strong U.S. production.

Bitcoin traded around $87,800, recovering from recent lows alongside modest gains in altcoins.

The Nifty 50 extended its losing streak to a third consecutive session yesterday, on November 25, declining by 74 points to close at 25,884

Nifty has closed very near to its previous swing low of 25856 and near to its 20 DEMA placed at 25838.

On the upside, the zone between 26,000 and 26,050 is likely to act as a strong resistance area in the near term.

Gift Nifty signals a positive start today, pointing toward a gap-up open on the back of positive global and Asian cues.