Market Update
Harsh Patel
Founder
The market remain ranged bound between 25730-25950 on Wednesday ahead of Fed policy, US markets cheers 25 bps rate cut and short-term bond buying by Fed injecting more fuel in the markets.
Nifty Hourly Chart
Support levels: 25700-25660 Resistance levels: 25900-25950
Nifty's rebound to 25950 was short lived as fresh selling from breakdown re-testing level pushed market to low of 25730, market likely to remain range bound. A contrarian buy trade may emerge above 25800 with limited upside to 25900-25950.
Below 25660 selling may intensify to 25450 level, which is 50% retracement level of the recent rally. BankNifty confirmed 'Rising Wedge Breakdown" on daily chart, a breach below 58900 may extend downside in banknifty to 58000 level.
Banknifty Daily Chart
Interest rate hike by BOJ in coming week remains a key risk factor, which may result into increasing selling pressure form FII/FPI as carry trade unwinds and equity markets sees flight of capital, which is also evident with rupee sliding, USDINR may cross 91 mark in coming days.
OI data suggests bearish undertone with PCR at 0.67 for weekly expiry, Unless 26000 is sustained on higher side or US-India Trade deal concludes with positive outcome market may remain in "Sell on Rise" mode, Max OI concentration in put has shifted to 25500, suggesting range expansion on downside.
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