GIFT Nifty futures up 70 points; markets set to open in green

Domestic markets are expected to open strong on March 20, following encouraging global cues and value buying at lower levels. NSE IX GIFT Nifty futures were trading 70 points above the previous close at 22,962, suggesting a gap-up opening for the benchmark indices. The trend comes after a broad-based rally in the last session, when the Nifty closed 1.5 per cent higher at 22,855, backed by advances in most sectors.

Technical perspective: Nifty targets 23,150; support at 22,700
The Nifty has crossed its 21-day exponential moving average (EMA) on the daily chart, indicating a short-term up trend. The Relative Strength Index (RSI) is also indicating a bullish crossover, adding to the positive tone. Experts foresee the index moving towards 23,150 in the short term, with 22,700 being a key support point. Volatility, as reflected in India VIX, decreased by 1.5 per cent to 13.21, reflecting diminished fear among investors.

Wall Street drops before Fed policy announcement
US stocks fell on Tuesday to end a two-day streak as investors awaited the Federal Reserve policy announcement cautiously. The Dow Jones Industrial Average slid 0.62 per cent, S&P 500 was down by 1.07 per cent, and the Nasdaq Composite plummeted by 1.71 per cent. Investors look to the Fed economic projections to give them some much-needed certainty of the course the interest rate would take.

In spite of the US market sell-off, Asian stocks were mostly upbeat. Japan's Topix rose 0.6 per cent, while S&P/ASX 200 in Australia fell by a marginal 0.2 per cent. European markets are likely to open on a positive note, with Euro Stoxx 50 futures rising 0.8 per cent.

Oil falls; rupee rises for third consecutive session
Crude oil prices moved down a notch after Russia consented to a temporary energy infrastructure attacks hiatus following a call by US President Donald Trump. Meanwhile, the Indian rupee bounced back for the third consecutive session, gaining 25 paise to settle at 86.56 against the US dollar.

Stocks in F&O ban today
The given stocks are on the F&O ban day for the current session:

• Manappuram Finance
• Hindustan Copper
• BSE
• IndusInd Bank
• SAIL

These stocks have crossed 95 per cent of the market-wide position limit.

FII and DII activity
Foreign institutional investors (FIIs) remained on a buying spree, and on Tuesday they made a net purchase of Rs 694 crore, bringing their net short positions down from Rs 1.71 lakh crore to Rs 1.41 lakh crore. Domestic institutional investors (DIIs) also picked up shares of Rs 2,535 crore, indicating the market's confidence.

Market outlook: Eye on Fed policy and global trends
Investors will closely monitor the Federal Reserve's policy direction, US bond yields, and crude oil prices for additional guidance. The overall mood is optimistic, supported by robust domestic liquidity and consistent foreign inflows. Provided that global markets continue to be stable, Indian equities are likely to remain on an uptrend with sectoral rotation being a major driver of gains.