Dear
Trader…
Markets traded
dull in a narrow range and ended marginally higher on Wednesday. Caution ahead
of the outcome of the US Fed meet capped movement till the end. Finally, the
Nifty future index closed at 17,185.00 levels; up by 0.14%. Meanwhile,
mixed trends on the sectoral front and selective buying in midcap and smallcap
space kept the participants busy till the end.
Markets will
react to the outcome of the US Fed meet in early trade on Thursday. And, the
scheduled weekly expiry would further add to the volatility. Since we’re eyeing
a hurdle around the 17,007-17,303 zone, participants should use further rebound
to reduce positions.
Nifty futures
opened at 17211.00 points against the previous close of 17160.15 and opened at
a low of 17142.10 points. Nifty Future closed with an average movement of 95.90
points and a rise of around 24.85 points and 17185.00 points…!!
On the NSE,
the midcap 100 index will rise 0.28% and small cap 100 index is closing rise
0.54%. Speaking of various sectoral indices only Media, Realty and Metal stocks
were seen selling on the NSE, while all other sectoral indices closed higher.
At the start
of intra-day trading, April gold opened at Rs.58563, fell from a high of Rs.58756
points to a low of Rs.58473 with a rise of 11 points, a trend of around Rs.58590
and May Silver opened at Rs.68566, fell from a high of Rs.68975 points to a low
of Rs.68513, with a rise of 200 points, a trend of around Rs.68594.
Meanwhile, today it could turn out to be a make-or-break day for the
stock markets. The US Federal Reserve will be announcing the decision on
whether they are taking a pause or continue hiking interest rates. The FOMC
meeting is underway on March 21-22 and the Fed’s final decision on rate hikes
will be announced by Fed Chair Powell on Wednesday, March 22 at 2 pm ET. (11.30
pm IST). The FOMC rate hike release will be followed by Powell’s press
conference which will be closely tracked by investors globally.
Ahead
of US Fed’s announcement of a likely increase in interest rates, foreign
institutional investors (FIIs) have started pulling out of Indian and other
emerging equity markets. We are a major importer of crude oil, and continuous
selling by FIIs results in rupee depreciation and a higher import bill. This,
in turn, has a negative impact on our current account balance. The Indian
market can be described to be on a rather independent trajectory of its own.
Depreciation
of the Indian rupee should
actually help raise exports from India, thereby bringing in greater revenue for
Indian domestic producers. GST collections, fuel consumption etc. have been
healthy throughout so the impact on the Indian equity market and emerging
market is expected to be nominal.
Technically, the important key resistances are placed in Nifty future are at 17303 levels, which could offer for the market on the higher side. Sustainability above this zone would signal opens the door for a directional up move with immediate resistances seen at 17373 – 17404 levels. Immediate support is placed at 17070 – 17007 levels.
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