Below is the Views On Nifty formed an Inside Bar on daily scale as it traded inside the trading range of last session by Mr. Siddhartha Khemka, Head-Retail Research, Motilal Oswal Financial Services
Equity markets remained in a tight range and closed marginally in green ahead of US Fed interest rate decision today. Nifty gained 0.2% (23 points) to close at 10840. Recovery was seen in the market on account of decline in oil price, fall in USDINR and 10-year G-Sec Yield. Brent crude recovered from high of $71/bbl to $64/bbl as Saudi officials said they had restored just under half the output lost at the Abqaiq plant. Moreover, USDINR correct by 53 bps and 10-year Yield declined 10bps, aiding sentiment in the market. However, market did not yet rally on account of US FOMC interest rate decision and important statement today. India VIX declined 5% to 15.16. Oil marketing, Metal, select FMCG and PSU banking stocks gained while private banks declined.
Going forward, market is likely to remain range-bound. The focus would be on Central banks globally with US Fed announcing its policy today evening and Bank of Japan and Bank of England meeting tomorrow. Markets would continue to track development in the Gulf region which could keep things volatile. On the domestic side, the GST council meeting on 20th Sept (Friday) will hold importance as markets are expecting some tax relief – especially for the auto sector – which looks difficult given the current revenue shortfall for the government.
Technically, Nifty formed an Inside Bar on daily scale as it traded inside the trading range of last session. Price formation suggests a bearishness but support are intact which is keeping the index in broader trading range. Now it needs to hold above 10800 zones to witness a bounce towards 10930-10950 zones while on the downside supports are seen at 10750-10700 levels.
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