BSE Sensex and Nifty 50 ended in the negative 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, while the broader Nifty 50 index settled at 14,721, down 189.15 points or 1.27 per cent. A host of factors have weighed in Indian share markets such as US Fed meeting outcome, a resurgence in COVID-19 cases, rise in international crude prices, 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, among others, contributed the most to the indices’ loss. Market breadth largely favored bears today, as 2,148 stocks declined while 837 advanced. A total of 140 scrips remained unchanged. The broader markets underperformed their large-cap peers with the S&P BSE MidCap index falling 2.28 per cent or 467 points, while 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 support range. Short to medium term weakness will be triggered once we break 14700 on a closing basis. Thereafter 14300-14400 is a possibility. On the upside, unless we do not get past 15300, we will not see a bullish trend. The current range is between 14700-15300 and unless we do not get past 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 where the median of the 18 members expecting the rates to stay between 0 and 0.25 %. 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 well as the yields. If this happens, it would be good base for some technical pullback. With PCR of 0.83, NIFTY is oversold on short-term charts. If any technical pullback occurs, we have resistance at 14830 and 14900 levels. If 14700 is not held, then the next support comes in at 14565.
Vinod Nair, Head of Research at Geojit Financial Services
Indian market remained in negative territory as investors traded cautiously ahead of the US Fed meeting coupled with a resurgence in covid cases. Adding to that, the rise in international crude prices is also dragging the Indian market. Global markets also displayed a weak opening as it awaits the final decision of the FOMC meeting today, which will decide the trend of the market in the short-term. On a consensus basis, an accommodative policy is expected by FED, which will help the global market to stabilize.
Rohit Singre, Senior Technical Analyst at LKP Securities
Index decisively broke strong support zone of 14750 and closed below same which gives confirmation of breaking its rising trend line which can result in some more pressure in coming sessions if held below 14750 zone. Now on the downside, good support is coming near 14610-14500 zone any break below said levels may give trend reversal signal, resistance is still at 14750-14850 zone above that we may see some swift pull back in index.
S Hariharan, Head – Sales Trading, Emkay Global Financial Services
Global markets have been highly correlated with moves in US Dollar and US 10-year yields over the last week, and tonight’s FOMC meet is a much-watched event. The Fed’s commentary on how it sees US growth trajectory and inflation expectations panning out over CY21 would determine the next course for macro flows to Emerging Markets. The price ratio of MSCI EM/DM indices after a break-out from a 10-year downtrend in Dec ’20 has drifted back towards the trendline, and confirmed drop below the trendline would be a meaningfully adverse development – much of the strength in headline indices over the last 5 months has been driven by strong FII flows, as domestic MFs face redemption pressure. From a technical standpoint as well, key indices such as Nifty & Banknifty have reached critical support levels – Nifty is at the trendline in effect since Mar’20 and Banknifty at the trendline since Nov’20. A break of these trends would portend a quick downward reaction. Money markets are currently facing seasonal year-end liquidity crunch, which has been driving overnight rates up.’