BSE Sensex and Nifty 50 ended in the damaging territory for the fourth straight trading session on Wednesday, as metals and PSU stocks succumbed to profit-booking. BSE Sensex tumbled 562.34 points or 1.12 per cent to 49,801.62, although the broader Nifty 50 index settled at 14,721, down 189.15 points or 1.27 per cent. A host of things have weighed in Indian share markets such as US Fed meeting outcome, a resurgence in COVID-19 situations, rise in international crude costs, and weekly expiry of F&O contracts due on Thursday. Index-heavyweights such as Reliance Industries Ltd (RIL), HDFC Bank, Kotak Mahindra Bank, State Bank of India (SBI) and ICICI Bank, amongst other individuals, contributed the most to the indices’ loss. Market breadth largely favored bears today, as 2,148 stocks declined although 837 sophisticated. A total of 140 scrips remained unchanged. The broader markets underperformed their massive-cap peers with the S&P BSE MidCap index falling 2.28 per cent or 467 points, although the S&P BSE SmallCap index lost 2.12 per cent or 449 points.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
The index has continued to respect the 14700-14750 assistance variety. Short to medium term weakness will be triggered when we break 14700 on a closing basis. Thereafter 14300-14400 is a possibility. On the upside, unless we do not get previous 15300, we will not see a bullish trend. The present variety is in between 14700-15300 and unless we do not get previous either of them, we will continue to see uneventful trading sessions.
Milan Vaishnav, CMT, MSTA, Consulting Technical Analyst and founder of Gemstone Equity Research & Advisory Services
The markets are more worried on the US Fed commentary which is slated to come in tonight exactly where the median of the 18 members expecting the prices to keep in between and .25 %. Coming to domestic markets, the NIFTY has tested its 50-DMA. Any dovish comments by the US Fed Reserve will see some softening in the Dollar as nicely as the yields. If this occurs, it would be superior base for some technical pullback. With PCR of .83, NIFTY is oversold on brief-term charts. If any technical pullback happens, we have resistance at 14830 and 14900 levels. If 14700 is not held, then the next assistance comes in at 14565.
Vinod Nair, Head of Research at Geojit Financial Services
Indian marketplace remained in damaging territory as investors traded cautiously ahead of the US Fed meeting coupled with a resurgence in covid situations. Adding to that, the rise in international crude costs is also dragging the Indian marketplace. Global markets also displayed a weak opening as it awaits the final selection of the FOMC meeting today, which will choose the trend of the marketplace in the brief-term. On a consensus basis, an accommodative policy is anticipated by FED, which will aid the worldwide marketplace to stabilize.
Rohit Singre, Senior Technical Analyst at LKP Securities
Index decisively broke robust assistance zone of 14750 and closed under similar which offers confirmation of breaking its increasing trend line which can outcome in some more stress in coming sessions if held under 14750 zone. Now on the downside, superior assistance is coming close to 14610-14500 zone any break under stated levels may well give trend reversal signal, resistance is nevertheless at 14750-14850 zone above that we may well see some swift pull back in index.
S Hariharan, Head – Sales Trading, Emkay Global Financial Services
Global markets have been very correlated with moves in US Dollar and US 10-year yields more than the final week, and tonight’s FOMC meet is a significantly-watched occasion. The Fed’s commentary on how it sees US development trajectory and inflation expectations panning out more than CY21 would figure out the next course for macro flows to Emerging Markets. The cost ratio of MSCI EM/DM indices soon after a break-out from a 10-year downtrend in Dec ’20 has drifted back towards the trendline, and confirmed drop under the trendline would be a meaningfully adverse improvement – significantly of the strength in headline indices more than the final 5 months has been driven by robust FII flows, as domestic MFs face redemption stress. From a technical standpoint as nicely, important indices such as Nifty & Banknifty have reached important assistance levels – Nifty is at the trendline in impact given that Mar’20 and Banknifty at the trendline given that Nov’20. A break of these trends would portend a rapid downward reaction. Money markets are presently facing seasonal year-finish liquidity crunch, which has been driving overnight prices up.’