7 hrs ago
Sensex, Nifty Recover Ahead of US Fed Decision
Indian share prices went up a little on Wednesday after falling the day before.
Cheaper oil and lower bond yields made investors feel somewhat more comfortable.
Banking, consumer-goods and automobile companies helped the main indexes rise.
Technology shares fell because some investors sold stocks after recent gains.
Many traders were waiting for the US Federal Reserve’s interest-rate announcement.
Analysts said the Nifty is moving sideways and could go either up or down.
A move above 23,300 could lead to more gains toward 23,500.
A fall below support levels could lead to further losses, possibly toward 22,500.
Sensex and Nifty 50 gained more than 0.40% each on Wednesday, 16 September.
Lower crude oil prices and global bond yields supported Indian equities, while banking, FMCG and automobile stocks advanced.
Technology stocks lagged as investors booked profits, while the Nifty Midcap 100 was flat and Nifty Smallcap 100 fell 0.18%.
Analysts identified 23,300 as Nifty resistance, with support zones ranging from 23,000 to 23,200.
A decisive move above resistance could support a recovery, while a break below support could send Nifty toward 22,500 or lower.
- Who
- Indian stock-market investors, along with analysts Vinod Nair, Rupak De and Vipin Kumar.
- What
- The Sensex and Nifty recovered part of the previous session’s losses, while analysts assessed possible levels for the next market move.
- Where
- Indian stock exchanges, with sentiment also influenced by Asian and US markets.
- When
- Wednesday, 16 September; the outlook discussed the following Thursday session.
- Why
- Lower crude oil prices, easing bond yields and buying in major sectors supported the recovery, while investors awaited the US Federal Reserve’s policy decision.
Recovery Scenario
Downside Scenario
Near-term Nifty direction
Recovery Scenario
Rupak De said a decisive move above 23,300 could lead to a recovery toward 23,500 and higher; he also noted that the RSI was deeply oversold, though this alone does not guarantee a recovery.
Downside Scenario
Vipin Kumar said the chart structure and elevated crude oil prices suggested a possible further downside move in the near term.
Key trading levels
Recovery Scenario
The index could find support above the previous low, and a break above 23,300 would strengthen the recovery case.
Downside Scenario
Kumar identified immediate support around 23,000–23,100 and warned that a decisive close below that zone could lead to 22,500 or lower.
Market sentiment
Recovery Scenario
Vinod Nair said easing crude prices, largely priced-in US rate action and moderating Japanese bond yields supported risk appetite across Asian markets.
Downside Scenario
Buying remained limited because investors awaited the Federal Reserve chair’s guidance on the future rate path and its effect on global liquidity and capital flows.
Key facts
- Sensex performance
- Closed Wednesday with a gain of more than 0.40%.
- Nifty 50 performance
- Closed Wednesday with a gain of more than 0.40%.
- Nifty Midcap 100
- Finished flat.
- Nifty Smallcap 100
- Declined 0.18%.
- Nifty resistance
- 23,300; a decisive move above it could open a path toward 23,500 and higher.
- Nifty support
- Analysts cited support around 23,000–23,200.
- Further downside level
- A decisive close below 23,000–23,100 could push Nifty toward 22,500 or lower.
Quotes
Vipin Kumar
AVP-Research at Globe Capital Market
“A decisive close below this zone could push it toward 22,500 or lower in the immediate near term. Any bounce back toward the 23,450–23,600 spot zone will attract renewed sellers' interest.”
livemint.com
“A decisive move above 23,300 might lead to a recovery towards 23,500 and higher, while on the lower end, the downside may resume below 23,200.”
livemint.com
Sources
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