The Indian market opened on a strong note on Wednesday, the day when Fed meeting is scheduled and a decision on interest rate is awaited. Benchmarks gained more than 1% in the opening trade amid improved global cues as oil slipped below $100 for the first time and anticipating a breakthrough in Russia-Ukraine talks.  

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The broader Nifty. gained around 1.25%, while the Sensex added nearly 800 points to start at 16,876.65 and 56,555.33 respectively as the indices witnessed gap up opening. 

In the pre-open, Sensex was trading with gains of nearly 800 points as all stocks advanced on the 30-share index.

Yesterday’s hammering eased off on approach to our downside marker of 16480, setting up yet another showdown with the 16960 region, which we had pipped to force a turn lower yesterday as well, said Anand James - Chief Market Strategist at Geojit Financial Services.

"The swift pull back from yesterday’s lows is consistent with the short term view of 17300-18000, but the chances of a close above 16960 today looks low though. And even in the event of a break, a directional up move may have to wait. Expect 16700s to be a sticky region," he added.   

Earlier, trends at SGX Nifty, which was trading higher by over 200 points, around 9 am too hinted at a positive opening for the domestic equity market.  

"Nifty closed lower at 16,663 on Tuesday as it nearly engulfed the bullish bar made in the previous session, while VIX ended at ~27-level. The Index faced price rejection at the critical resistance zone of 17,000-16,800, which also houses the 200- DMA (16,974) and only a quick dash above the same might drive short-covering move towards 17,200-level," said Viraj Vyas, Technical and Derivatives Analyst at Ashika Stock Broking Limited. 

On the downside, momentum support is seen at 16,450-level, while critical support is seen at 16,000-level, he added.  

Earlier, Mohit Nigam, Head - PMS, Hem Securities was of the view that benchmark indices would make a gap up opening as suggested by early trends on SGX nifty. "Asian markets are trading with handsome gains and teh US markets also closed in green with significant gains," he said.  

"The increasing cases of covid in China and Europe affected investor sentiments which resulted in heavy selling in Banking and finance, FMCG, metals and technology stocks. We believe yesterday’s fall is just a short-term correction as Nifty gained more than 6% in the preceding five sessions.  On the Technical front, the key resistance level for Nifty50 is 16,850 followed by 17,100 and on the downside 16,500 and 16,350 will act as strong support. They key resistance level for bank nifty is 35,500 followed by 36,000 and on the downside 34,600 and 34,100 will act as strong support," Nigam added.

Meanwhile, Asian markets were trading in the green as Japanese Nikkei 225 was up more than 3%, Hang Seng Index at the Hong Kong Exchange was trading higher by more than 2% and Chinese Shanghai Composite was up 0.5% in the early trade on Wednesday.  

On Tuesday, the US market ended higher ahead of the Fed meeting today. Dow Jones was up 599 points, Nasdaq Composite 367 points and S&P 500 ended higher by 89 points. 

(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.)