The Indian market continued its losing streak as it extended losses for the fourth consecutive session on Wednesday ahead of FOMC meet outcome, thereby failing to close on a positive not so far. The spotlight on the U.S. central bank`s decision comes after the Reserve Bank of India (RBI) last week increased repo rate by 50 basis points as widely expected, in a bid to contain soaring inflation. 

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

Benchmark indices Nifty50 and Sensex ended flat with marginal cuts. The broader Nifty50 dipped 0.25% to slip below 16,700, while the the Sensex declined by 0.29% to end above 52,500.  

The weakness came from IT, Metal, oil & gas, Realty and Banking sectors, while buyin interest was seen in Auto, Pharma, Healthcare and Consumer Durables.  

Small cap and mid cap stocks also attracted buyers as Nifty midcap and smallcap indices closed higher by 0.3% and 0.6% respectively amid volatility. 

Meanwhile, Foreign institutional investors (FIIs) sold shares worth Rs 4,502.25 crore in Indian market on Tuesday. So far in June, they remained net sellers by pulling out Rs 27,481.22 crore till Tuesday.  

With the US Federal Reserve all set to announce the outcome of the meeting held between 13-15 June, here is what experts make of the current trends in the market.  

Vinod Nair, Head of Research at Geojit Financial Services 

Looming fears of stagflation and volatility ahead of the Fed meeting decision forced the market to close flat with a negative bias. The aggressive rate hike of 50-75 bps is mostly factored by the market but updated economic and interest rate forecasts to be detailed by the central bank's will closely control the future trend" 

Ajit Mishra, VP - Research, Religare Broking Ltd. 

Equity markets traded nervously ahead of the US Fed meet outcome. While strength was seen in morning, selling pressure in the second half dragged the indices lower. All eyes would be on the US Fed meet outcome. 

Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities. 

The volatility continued in the Nifty index ahead of the crucial US FOMC meet outcome. The index lower-end support stands at 15,500, where fresh put writing has been observed and if fails to sustain above it will witness further selling pressure. The upper-end resistance stands at 16,000 where the highest open interest is built up on the call side. 

The Bank Nifty index witnessed a range-bound trading session and will witness sharp movement on either side post the FOMC meeting. The immediate upper-end hurdle stands at 34,000 and a breach above that will lead to fresh short covering. The lower-end support stands at the 33,000-32,500 zone which has earlier acted as the demand zone. 

Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas  

For yet another session, the Nifty traded near the swing lows seen in March & May this year. The March low of 15671 has not been breached on a closing basis for the third consecutive session. The Bank Nifty and the broader market indices are holding above their recent swing lows. Thus, the potential for a short-term bounce back remains intact. 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 

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)