Wall Street closed weaker yesterday as investors grew cautious about the AI rally's sustainability and took profits in tech stocks.
Dow Jones fell nearly five hundred points or 1.1%, S&P 500 dropped 0.8%, and Nasdaq declined 1.2%.
Major tech stocks including Nvidia (-1.88%), Apple (-1.82%), and Home Depot (-1.19%) led the declines.
Retail sector stocks saw selling pressure due to uncertain consumer demand ahead of the holiday season.
Treasury yields eased slightly to 4.11%, but markets remained under pressure.
Indian ADRs showed positive moves overnight: Infosys ADR up 0.98%, HDFC Bank ADR up 0.79%, ICICI Bank ADR up 0.52%, while Reliance ADR was unchanged.
Asian markets extended declines with Nikkei down 2.7%, Hang Seng down 1.68%, and Shanghai Composite down 0.56% in early trading.
Gift Nifty trades around 25,930, suggesting a mildly positive open for the Indian market, likely range-bound awaiting Nvidia earnings clarity.
Global focus is on Nvidia’s Q3 earnings expected after market close, with revenue forecast around $54.8 billion, a 56% year-over-year jump.
Options markets indicate a possible $320 billion swing in Nvidia’s valuation depending on earnings outcome.
Indian markets snapped a six-day winning streak; Sensex closed down 0.33% at 84,673 and Nifty down 0.4% at 25,910.
Foreign institutional investors logged cumulative outflows of ₹1,39,252 crores in November so far.
FPIs remain interested in primary markets with investments of ₹7,833 crores in November.
Excelsoft Technologies IPO opens today with a price band of ₹114 to ₹120, closing November 21, listing November 26.
Nifty resistance is seen near 26,000 to 26,100, with support between 25,850 and 25,900; Bank Nifty holds above its 50-day moving average around 58,699.
Commodities: WTI crude at $59.50/barrel, Brent crude at $63.77/barrel, gold down 1.45% at $4,077/oz, silver down 2.26% at $49.58/oz.
Trading outlook advises caution today amid Nvidia earnings and Asian market pressures; focus on selective buying in resilient sectors like banking.
Intraday traders advised to prioritize mean reversion strategies and avoid heavy leverage until clarity on market direction emerges.