Sensex jumps nearly 900 points in 2 sessions. What investors should do on Wednesday


As a 75 bps point hike by the US Fed looks more probable now, headline equity index Sensex has rallied by around 900 points in the last two sessions. Buying was healthy across sectors and market caps. Nifty has now crossed the key resistance at 17,700-17,800 level. Analysts said the index has to hold above 17,777 for an up move towards 18,000 and 18,088 zones, whereas support exists at 17,667 and 17,550 zones.

A day ahead of the outcome of the Fed meeting, volumes in the cash market were lower by 10 per cent compared to the average of the last ten days.

Here’s what analysts say:

Devarsh Vakil, Deputy Head of Retail Research, Securities
Short-term support for the Nifty is seen at 17,500-odd levels, which happens to be the 34-day EMA. Resistance for Nifty is at 18,100-odd levels. For the last six weeks, Nifty has been in a tight consolidation zone. Breakouts from the 17,500-18,100 range would give a directional move in the Nifty.

Rupak De, Senior Technical Analyst at
Nifty had started to gap up and remained range-bound during the day. On the higher end, 17,900 has acted as resistance leading to a close near the day’s low. The trend is likely to remain positive as long as it sustains above 17,700. On the higher end, a move above 17,900 may induce a rally towards 18,100 and higher.

Ajit Mishra, VP – Research, Broking
We believe all eyes will be on the FOMC meeting scheduled tomorrow, wherein there are high expectations of the Fed increasing the rates by 75 bps. So, the Fed’s decision will dictate the market trend going ahead. Meanwhile, investors will continue to monitor global cues, and crude and currency movement.

Chandan ,
On the Options front, the Maximum Call OI was seen at 18,000 and 18,500 strikes, while the maximum Put OI stood at 17,500 and 17,000 strikes. Call writing was at 17,900-18,000 strike while Put writing was at 17,800-17,550 strike. Options data suggests a broader trading range between 17,200 to 18,200 zones while an immediate range in between 17,500 to 18,000 zones.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)



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