Sensex, Nifty snap 3-day record closing spree ahead of FOMC outcome; what analysts’ make of today’s trade

BSE Sensex and Nifty 50 index snapped their three-day record closing spree on Wednesday, ahead of the outcome of the US Federal Reserve’s monetary policy meeting. BSE Sensex ended weak at 52,502, while the broader Nifty 50 index settled lower at 15,767. The broader market underperformed the equity benchmarks. The S&P BSE Midcap index fell 218.06 points or 0.95 per cent to end at 22,689.35, while S&P BSE SmallCap index lost 0.68 per cent or 171.21 points to finish at 25,015.06. India VIX, the volatility index, gained 1.78 per cent to end at 14.87 levels.

Rohit Singre, Senior Technical Analyst at LKP Securities

After forming a Doji candle pattern in yesterday’s session nifty formed a bearish candle on daily chart & given close at 15756 with loss of nearly one percent. Nifty reached to its good support zone of 15750 if break then some more slide towards next support zone of 15650 but if managed to hold above good support zone then some decent pullback can be a witness towards 15850-15900 zone where one can again lock their gains in longs.

Sahaj Agrawal, Head of Research- Derivatives at Kotak Securities

For the short term traders, an aggressive trade has not triggered yet for the Index while stock specific move continues; advice keeping a check on leveraged positions. For investors, the broader sentiment remains positive with buying on meaningful dips advisable. Any correction on account of the FED meet outcome remains an opportunity to accumulate. IT and FMCG remain strong while select BFSI stocks can be bought at current levels.

Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments

The Nifty managed to close above the support of 15700 which is a positive sign. If we break this level on a closing basis, the current trend would need to be evaluated again. A risk reward trade can be considered at these levels where the target would be 15900-16000 and a stop could be placed below the closing of 15700. Until we do not break 15700 on a closing basis, the current trend remains bullish.

Vinod Nair, Head of Research at Geojit Financial Services

Indian indices slipped ahead of the Fed policy announcement as global markets turned cautious. Weakening MoM sales data and rising prices in the US are adding concerns to ongoing inflationary trend. But Fed maintaining an accommodative policy and a calm comment on short-term inflationary pressure can drive the markets ahead.