Nifty 50 and Sensex are trading lower following the weakness in the global equity markets. Both the indices are down about 0.25 per cent. Sensex is trading at 61,198 and Nifty is at 18,098. The US markets tumbled over a per cent on Tuesday. As a result, the Asian equities are trading weak today.
Fed meeting
It looks like the market is turning slightly cautious and repositioning ahead of the US Federal Reserve meeting tonight.
The outcome of the Fed meeting could set the tone for the market going forward. Will the Fed increase the rates by 25 basis points today or pause for a while and watch the situation remains a big questions. We will have to wait and watch.
Nifty 50 Futures
The Nifty 50 May futures (18,165) is down 0.26 per cent. The contract has declined below the intermediate support level of 18,180. The region between 18,180 and 18,200 can act as a good intraday resistance.
A strong rise past 18,200 is needed to ease the downside pressure and move up to 18,250 again. As long as the contract trades below 18,200, the chances of a fall to 18,100-18,050 cannot be ruled out in the coming sessions. It is a wait and watch situation.
Trading strategy
The market can remain volatile ahead of the Fed meeting outcome tonight. The Nifty 50 futures can move either way from current levels. Since the movement for the day is unclear, we suggest traders to stay out of the market.
Supports: 18,100, 18,050
Resistances: 18,200, 18,250
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.