The Indian equity market is expected to open cautiously on Thursday, influenced by mixed cues from global peers following the decision of the US Federal Reserve to keep interest rates unchanged. The Fed also signaled a more hawkish stance by projecting two more rate hikes this year due to persistently high inflation.
On Wednesday, June 14, the Sensex and the Nifty50, the domestic equity benchmarks, closed in the green for the third consecutive session, extending their winning streak. The BSE Midcap index recorded a 0.20% gain, while the BSE Smallcap index saw a 0.42% increase for the day.
The market gains were primarily led by sectors such as metals, oil & gas, FMCG, and auto, while banking, IT, and pharma stocks experienced selling pressure, limiting the overall gains.
Siddhartha Khemka, the Head of Retail Research at Motilal Oswal Financial Services Ltd., stated that with improving macroeconomic indicators and foreign institutional investors (FII) buying, the overall market structure remains positive. Investors will be closely watching the outcome of the US Federal Reserve meeting on the policy rate, and the comments from the Fed Chair will hold significance.
Khemka also provided key levels to watch for the Nifty. He mentioned that resistance is expected at the 18,800 – 18,900 levels, while support can be found at the 18,700 – 18,600 levels.
Jatin Gedia, a Technical Research Analyst at Sharekhan by BNP Paribas, expressed his view on the Nifty’s movement. Gedia mentioned that the Nifty was gradually moving higher towards the previous swing high at 18,778. Once this level is breached, it is likely to lead to further upside momentum. He also highlighted that the hourly and daily momentum indicators are currently providing divergent signals, which are expected to align once there is a decisive move in either direction. Overall, Gedia believes that the uptrend is intact, and he expects the Nifty to reach levels of 18,800 in the short term. He identified the levels of 18,630 – 18,620 as a crucial support zone and 18,778 – 18,800 as an immediate hurdle zone.
In summary, the Indian equity market is anticipated to open cautiously on Thursday, influenced by the US Federal Reserve’s decision to keep interest rates unchanged and its indication of a more hawkish stance. The previous day’s session saw the Sensex and Nifty50 closing in the green for the third consecutive day, with gains driven by sectors like metals, oil & gas, FMCG, and auto. However, selling pressure in banking, IT, and pharma stocks limited the overall gains. Market experts highlighted the importance of the US Federal Reserve’s meeting outcome and the comments from the Fed Chair. They also provided key levels to watch for the Nifty, highlighting support and resistance levels for investors to consider.
