A Volatile Session, Gap Up, Sharp Selling And Recovery At Close After Fed Meeting Results

The Indian market witnessed a high volatile session on Thursday. After a gap-up opening post FOMC meeting, market witnessed slide while the midcap stocks fell the most. The widely traded midcap selects index slide to 12882 after posting an intraday high 1328. The index closed at 13087, down 0.34 per cent since the previous session’s close. The broader Nifty 500 index settled lower 0.19 per cent with a negative breadth. Among 500 companies, only 181 advanced and 319 declined in today’s trade.

Banks, Auto, Financial services, FMCG and realty witnessed some positive close today while pharma dropped 0.41 per cent and IT slide 0.34 per cent.

Business and Economic Developments

• The RBI lifts restrictions imposed on gold loan business of the company and allows it to resume sanctioning, disbursal, assignment, securitization, and sale of gold loans in compliance with all relevant laws and regulation.

• SEBI, the market regulator has asked Axis Capital (ACL) from undertaking any new assignments in the capacity of merchant banker, arranger or underwriter for any issue of securities in the debt segment.

• The Indian government has approved the plan to sale of 100 per cent equity shareholding of Ferro Scrap Nigam Limited (FSNL), a subsidiary of MSTC Ltd.

• The US weekly Initial claims decreased by 12,000 to 219,000 in the week ended September 14, according to Labor Department data released.

• The Bank of England kept the benchmark interest rate unchanged at 5 per cent. The BoE see Inflation in the UK may rise to 2.5 per cent in Q4 2024. Yesterday, the US fed cut target rates by 50 basis point leaving room for further rate cuts. The US Fed see that the benchmark fed funds target rate falling by another 50 bps by the end of this year, another full percentage point in 2025, and a final half-point reduction in 2026 to end in a 2.75 per cent-3.00 per cent range.

Market Outlook - Index

NIFTY: The NIFTY posted ATH 25610 today and formed an inverted hammer at the top. The index closed at 25415 after posting an intraday low of 25377. The NIFTY has a resistance at 25476 and if prices manages to break and sustain above that, we can see further advance. On the flipside, the support is pegged at 25320 and a break below the same may bring in corrective move. Else can expect a range bound trading.

BANK NIFTY: The Bank Nifty has a strong resistance at 53350-70 range which is previous reaction high and a break and sustain above the same may bring in advances. The immediate support a 52750-700 range for today.

NIFTY MIDCAP Select Index: The index has strong support at 13000-12980 levels and if the level is held the market may try to stay firm today. The immediate resistance is strong at the zone 13150-170 range.

Stocks: Buy Oberoi Realty LTP 1855, target 1950-2000 in the short term with stop loss below 1770. TCS: Buy on decline to 4220-4230 target 4310 with stop loss below 4160.

Also Read: Fed Cut Rates by 50 BP, In Line With Our Expectations