Ahead of the Fed meeting, the Indian market had ended in the red for the fourth consecutive session on Wednesday. In the biggest hike since 1994, the US Federal Reserve on Wednesday hiked the interest rate by 75 basis points. The benchmarks ended with marginal cuts of around 03% as Nifty50 slipped below 15,700 and the Sensex dropped around 150 points to settle above 52,500.
Outperforming benchmark indices, Nifty midcap and smallcap indices closed higher by 0.3% and 0.6% respectively amid volatility.
The weakness largely came from IT, Metal, oil & gas, Realty and Banking sectors, while buying interest was seen in Auto, Pharma, Healthcare and Consumer Durables.
For yet another session, the Nifty traded near the swing lows seen in March & May this year, said Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas
The March low of 15671 has not been breached on a closing basis for the third consecutive session, he said. “On the higher side, 15800 is acting as a near term resistance for the Nifty. If the index surpasses this barrier, then it will be poised for a leap towards 16000. However, breach of the March low on a closing basis will negate this possibility. In that case, the index can slide down to 15400 & subsequently to 15100,” the expert added.
Meanwhile certain stocks came in focus on Wednesday. These stocks were Affle India, Tata Chemicals and Jamna Auto. Affle India ended with over five per cent gain, Tata Chemicals declined four per cent and Jamna Auto settled with nearly four per cent gains on Wednesday.
Here is what Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd, suggests investors should do with these stocks once the market opens today.
The long-term structure is bullish as it is making higher highs and higher lows formation. And now, it is trying to find a base near the 900-level followed by a meaningful correction. On the upside, 1070 is an immediate hurdle; above this, we can expect a move towards 1150/1250 levels. On the downside, 800-750 is the next major support area.
The near-term structure looks weak as it surrenderers its 100-DMA with heavy volume that may lead to further weakness towards 825/800 levels. Momentum indicators are also negatively poised where 920 is an immediate resistance on the upside,
The structure of the Counter looks lucrative as it is taking support from 200-DMA, also having a strong demand zone around 100 level. The counter is witnessing ascending triangle formation on the daily chart. On the upside, 114-116 is an immediate resistance zone; above this, we can expect a 130+ level in the next term. On the downside, if slips below the 100 level then 94/88 are the next support levels.