Sensex and Nifty ended lower Wednesday dragged by broad-based selling in metals, IT and financial stocks. Broader markets, midcap and smallcap indices also declined. Barring Nifty Auto, all other sectoral indices closed in the red with metal, IT, private bank and pharma indices falling the most.
Sensex falls 282 points
The Nifty continues to witness selling pressure at higher levels. Today was no different and we again resisted closer to the 15,900 levels. A buy-on-dips approach would be the most prudent way to trade this market. Strong support lies at 15,400 and until that does not break, we can accumulate long positions for a target of 16,000-16,100.
The market witnessed a roller coaster ride, as it opened higher but lost momentum thereafter to close at the lowest point of the day. This could be due to the monthly & quarterly F&O contracts expiry and the AGM of Reliance Industries on Thursday. India Vix jumped and the Nifty/Sensex settled on the support of the 20-day SMA, which is at 15,670/52,250.
The Nifty/Sensex was expected to find support between 15,670/52,300 and 15,700/52,400 levels but volatility was unimaginable. On Thursday, the markets would be a trading range of 15,800/52,800 and 15,550/51,700 levels. Below 15,670/52,250, the Nifty/Sensex would quickly drop to the level of 15,550/51,700. On the other hand, if the Nifty/Sensex trades above 15,670/52,250, then the market would move to the level of 15,800/52,800. One should be a level based trader.
The USDINR spot is following the trend in dollar. Fed Powell downplaying the threat of tapering is not weighing on the spot, rather Fed rate hike worries have kept all the dollar bulls active. So until the spot tries above 73.75-73.80, it will remain afloat with immediate resistance around 74.50 and then 74.75 zone. While the major supports lies around 73.75-73.50-73.45.