Weekly F&O expiry: Sensex, Nifty fall post US Fed meet outcome; here’s what technical charts say

BSE Sensex and Nifty 50 index settled lower on Thursday, a day of weekly options expiry. BSE Sensex settled lower at 52,323.33, while the broader Nifty 50 index ended at 15,691. A hawkish commentary from the US Federal Reserve also pushed the markets lower. Market breadth was negative as 1,819 stocks declined while 1,386 advanced. A total of 155 stocks remained unchanged. The broader markets underperformed equity benchmarks. BSE MidCap index fell 292.28 points or 1.29 per cent to 22,396.07, while BSE Smallcap index finished 0.58 per cent or 146.13 points down at 24,869. India VIX gained nearly 3 per cent to close above 15 levels at 15.29. Global stock markets were mostly lower Thursday after the US Federal Reserve indicated it might ease off economic stimulus earlier than previously thought.

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

The index closed below 15700 which is a matter of concern. Traders should take profits from their long trades and re-evaluate the markets. It is not recommended to go short. It is a time to assess if there is a shift in the short term trend from bullish to sideways or bearish.

Sumeet Bagadia, Executive Director, Choice Broking

Technically, the index has confirmed the Evening Star candlestick pattern at the top of the trend which suggests correction in the counter. Moreover, the index has given closing below 21 SMA & Middle Bollinger Band formations, which indicates further bearishness for the near term. In addition, a momentum indicator RSI (14) & Stochastic witnessed a negative crossover on the daily time frame. At present, nifty has an immediate support at 15550 levels, whereas 15900 may act as a crucial resistance zone.

Rohit Singre, Senior Technical Analyst at LKP Securities

Index opened with gap down for the second consecutive day and closed at 15691 with loss of half percent forming a doji sort of candle pattern on daily chart. the index showed a good pull back again from 15600 odd levels which will be immediate & strong support on the downside any break below said levels can see more pressure comes in, now strong hurdle is formed near 15750-15820 zone above 15820 we may see a good move till then longs can behold with overall stop out levels of 15600 zone.

Vinod Nair, Head of Research at Geojit Financial Services

Indian equities traded mirroring global peers after the optimistic comments by Fed acknowledging the strengthening of the economy. The rate hike has been advanced by a year to 2023 but is not the key point of issue to the market. While the fast normalization of the economy and strong job market can lead to a taper in bond-buying plan. This can lead to tightening of bonds yields which will impact the pricing of equity asset.

S Ranganathan, Head of Research at LKP Securities

Bulls stepped back a bit today following the economic forecast by the FED as the street stayed cautious on the slow economic recovery in emerging markets unlike some of the developed markets. While Metal names saw profit booking, we did witness keen buying interest in Cement & IT well supported by select consumer names during the volatile Afternoon session of trade