Dalal Street Corner: Market closes higher ahead of key FOMC meet; what should investors do on Thursday?

Indian markets settled positively on Wednesday ahead of the Federal Open Market Committee (FOMC) meeting scheduled later in the day. Recovering from yesterday's losses, the BSE Sensex surged 1,040 points to 56816 while the Nifty50 jumped 312 points to 16,975. 

As many as 47 of 50 stocks on Nifty50 closed in the green, with many stocks gaining almost up to 5 per cent. Cement and banks stocks were the biggest gainer. Ultratech Cement surged almost 5 per cent and was followed by Axis Bank, IndusInd Bank and Shree Cement, which were up between 3-4 per cent at the closing time. 

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Sectorally, almost all indices closed in the green on Wednesday, wherein bank, auto and financials surged most by over 2 per cent, followed by financial services, IT and FMCG stocks. The 12-share Nifty Bank gained 726 points to close at 35,748. 

In the broader market, the midcap Index was up 563 points at 28,585 at the market close. 

“Investor sentiments got a boost amid positive Asian market cues as China announces that they will roll out more economic stimulus to tackle the situation of rising covid cases,” according to market analyst Mohit Nigam. 

“Investors are now eyeing the outcomes of Fed meeting which will be concluded today. General market expectations predict increase in rate hikes for the first time in three years,” he added. 

Expert: Mohit Nigam, Head - PMS, Hem Securities 

Indian rupee appreciated against US dollar amid dollar selling from banks. Meanwhile, Ukrainian president stated that peace talks are looking more realistic now, indicating easing of tension between the two countries. 

On the technical front key resistance levels for Nifty50 is 17,300 and on the downside 16,700 will act as strong support. For Bank Nifty key resistance level is 36,500 and on the downside 35,000 will act as strong support. 

Expert: Vinod Nair, Head of Research at Geojit Financial Services 

Ease in FII selling and crude prices is adding strength to the domestic trend. Positive global cues and strong bounce back by the Chinese market in anticipation of stimulus supported the trend.  

The world equity market has stabilized factoring in a 25 basis points hike in US Fed, an in-line policy outlook, will be a relief to the market and we may see a drop in volatility 

Expert: Palak Kothari Research Associate Choice Broking 

Technically, Index has given breakout of prior swing high & given closing above the same which suggest northward direction in the counter. Moreover, the index has given closing above 21& 50 HMA which adds strength to the price.  

At present, the index has support at 16700 levels while resistance comes at 17000 levels, crossing above the same can show 17200-17300 levels. On the other hand, Bank nifty has support at 34800 levels while resistance at 36500 levels.  

Expert: Sahaj Agrawal, Head of Research- Derivatives at Kotak Securities 

Nifty has staged a strong recover with a combination of value and momentum. We expect the uptrend to sustain for the medium term. The March series expect limited downside with resistance placed at 17200-17300 levels; on the downside support is seen at 16500-16600 levels.  

Buying on Dips is advisable with focus on Cement, NBFC and Consumption space. Metals are expected to consolidate with high volatility. 

Expert: Chandan Taparia Vice President | Analyst-Derivatives Motilal Oswal Financial Services 

The last hour saw a quick pullback move and it inched towards 17000 zones. It gave the highest daily close of the last 14 trading sessions with intraday gains of around 310 points. It formed a Bullish candle on daily scale and has been forming higher highs from the last three sessions.  

Now, it must hold above 16850 zones, for an up move towards 17200 and 17350 zones whereas support exists at 16666 and 16500 zones. 

Expert: Sandeep Jain – TradeSwift - Director

The investors during Thursday’s session can do a bottom fishing in value stocks and can also book profit, provided the market reacts positively to FOMC rate hike. More than rate hike, the focus will largely be on the commentary.

The market has made a panic bottom of 15700-15800 due to Russia-Ukraine war and if US Fed maintains Dovish view, then chances of market rising are higher.