Benchmark Indices closed in Red with Nifty 50 closing -1.8% down and Sensex closing -1.64% down today due to negative global macros. It seems that Indian markets are now catching up with global markets which have been soft for a month now. The sell-off which began last Friday continues today with the mid/small cap stocks particularly taking it on the chin. With today’s fall the Nifty return CYTD 2022 has turned negative. The only sector holding out is the IT sector which is in the green due to the tailwind of a depreciating rupee which is at an all-time low of ~Rs.81.50. Investors are cautious on the outlook for equity markets globally due to the increasing assertiveness of global central banks on implementing interest rate hikes to tame rising prices. Thus central banks are likely to priorities inflation control vis a vis economic growth thus raising the risks of a global recession. Indian benchmark indices ended lower for the fourth consecutive session on September 26 with Nifty closing near 17,000 amid selling across the sectors barring IT. At Close, the Sensex was down 953 points at 57145, and the Nifty was down 311 points at 17016. The Indian market takes another step lower, chasing the global nod. Investors remained nervous as the RBI may follow the lead of global counterparts, including the US Federal Reserve, and raise interest rates on Friday to tame stubborn inflation. The speed with which central banks across the globe are hiking interest rates, investors are worried that slackening growth would push key economies into recession. With the monetary policy decisions on the anvil, rate-sensitive stocks like banking, realty & auto crumbled badly as rate hikes could dent demand going ahead. However, due to markets being in oversold territory, we could witness a quick pullback rally. For traders, the 200-day SMA and 16850 would act as a key support level. On the flip side 17100 and 17200 could be the immediate hurdle for the bulls. In the short-term, markets can remain volatile following the global macroeconomic uncertainty and rising interest rates. Nifty has breached psychological 17000 levels, as 17275-17350 will now act as immediate resistance, whereas support is placed around the 17000 levels. With no respite on the global front and a resumption of selling from foreign investors, we expect markets to remain under pressure and test the 16,850-16,950 zone in Nifty. Select pockets from FMCG, pharma and IT are showing resilience while the majority is reeling under pressure. Participants should align their positions accordingly.
Resistance: 17100,
17300, 17500
Support: 17000, 16800, 16600
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