14 December 2016


The Sensex failed to hang on to its positive start as it slipped 51 points while the Nifty traded below the key 8,200-level as caution set in before the Federal Reserve rate decision later in the day. Investors preferred to wait and watch ahead of the US rate-setting committee’s verdict on rate hike. The market mirrored the volatility seen in other emerging markets and settled below the 8,200 mark as investors remain cautious ahead of today’s Fed policy. A 25 bps rate hike is widely expected but any hawkish comment would act as a cloud over the EMs. Back home, both the CPI and WPI inflation has declined in November after currency shortage depressed the consumer demand. This may provide RBI a room for ease in interest rate. The Sensex ended at 26602, down 94 points, while the NSE Nifty quoted 8182, down 39 points. The Sensex indices opened at 26707, touched an intra-day high of 26736 and low of 26547. The NSE Nifty opened at 8229 points, hitting a high of 8229 and low of 8165.
On the upside, the Nifty has significant resistances at 8250 and 8300 levels. A conclusive rally above the second resistance is needed to strengthen the bullish momentum and take the contract up to 8330 and 8350 in the same period. Therefore, traders with a short-term perspective should desist from trading in the index futures contract as long as it trades in the sideways band between 8150 and 8115.
More about on Google +
Supports: 8150 and 8115
Resistances: 8250 and 8330

1 comment: