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Markets traded under pressure, losing over a percent on mixed evidence. After starting flat, the Nifty gradually declined throughout the day and eventually settled around the daily low to close at 18,042. Investors sold their holdings ahead of the US FOMC minutes result, which would indicate signs of an impending rate hike path. Other global macro concerns such as the slowdown in China due to higher Covid cases, falling crude oil prices and ongoing geopolitical tensions continue to weigh on investors. There could be increased volatility in the coming sessions due to the increasing uncertainty. The drop was widespread, with real estate, metals and energy among the top losers. The broader indices also traded in parallel, ending down more than a percent each. At the close, the Sensex was down 636 points to 60657 and the Nifty was down 189 points, to 18043. Global indicators aside, the domestic market will pay close attention to corporate earnings. India's PMI for services rose to 58.5 in December on stronger new business growth. That drop has erased gains from Nifty's last four sessions, and selling pressure in the banking index, which has acted as a savior so far, has continued to worsen sentiment. And we think the pressure in Nifty could go below 18000 levels. Considering the scenario, it is advisable to limit leveraged positions and wait for clarity.The Nifty found resistance near a rising trend line and the major daily moving averages for another session. The index fell sharply towards 18000. The bulls managed to defend the most important psychological level of the day. Unless Nifty breaks 18000 on the downside, it may bounce back towards 18200-18250. On the other hand, a break of 18000 will allow the Nifty to move further towards the lower end of the short-term consolidation, i.e.. 17800 to slide.
Resistance: 18100, 18150, 18200
Support: 18000, 17900, 17800
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