“Fed’s policy outcome will provide some direction to the market, until which consolidation is expected,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal
Here’s breaking down the pre-market actions:
STATE OF THE MARKETS
- Tech View: The near-term uptrend of Nifty is still intact and the market seems to have shifted into minor profit booking mode as per a smaller timeframe chart. A move below 20850 could slide Nifty towards another support of 20700 levels (10-day EMA), said Nagaraj Shetti of HDFC Securities.
- India VIX: India VIX, which is a measure of the fear in the markets, fell 0.35% to settle at 12.71 levels.
US stocks gain
The broader NSE Nifty dropped 90 points or 0.43% to end at 20,906. The 30-share BSE benchmark Sensex declined 377 points or 0.54% to settle at 69,551.
- Dow up 0.48%,
- S&P 500 rises 0.46%,
- Nasdaq gains 0.70%
Asian shares cautious
Stocks in Asia are set for a cautious open after mild moves on Wall Street in the run-up to the last Federal Reserve decision of the year, with underwhelming inflation data reinforcing speculation policymakers will be in no rush to claim victory just yet.
- S&P 500 futures rose 0.1% as of 8:06 a.m. Tokyo time; the S&P 500 rose 0.5% on Tuesday
- Nasdaq 100 futures rose 0.1%; the Nasdaq 100 rose 0.8%
- Hang Seng futures were little changed
- Australia’s S&P/ASX 200 was little changed
- Nikkei 225 futures rose 0.5%
Dollar on backfoot
The dollar remained on the back foot versus major rivals on Wednesday, as traders braced for the conclusion of a Federal Reserve policy meeting and clues on when the U.S. central bank will begin cutting interest rates.Stocks in F&O ban today
1) Delta Corp
5) SAIL
6) Nalco
8) ZEE
Securities in the ban period under the F&O segment include companies in which the security has crossed 95% of the market-wide position limit.
FII/DII action
Foreign portfolio investors were net buyers at Rs 76 crore on Tuesday. DIIs bought shares worth Rs 1923 crore.
Rupee
The rupee settled flat at 83.37 against the US dollar on Tuesday, as investors preferred to remain cautious ahead of the domestic inflation data release and US Fed meeting.
F&O data
The net long position of FIIs increased from Rs 33,194 crore on Monday to Rs 50,228 crore on Tuesday.
Macro data
India’s retail inflation surged 5.55% in November on an annual basis as against a four-month low of 4.87 per cent in October.