The equity market has entered the all-important week, wherein the focus will be on the US Fed meeting outcome, on an optimistic note. The Sensex and the Nifty were seen quoting at new life-time highs amid expectations that the US Fed will cut interest rates for the first time since March 2020 this week.
The US Fed policymakers will meet on September 17-18, and shall announce their policy decision on Wednesday night. Market watchers expect the US Federal Reserve to cut rates by at least 25 basis points (bps) this week as the latest government data revealed that US inflation cooled for the fifth straight month and rose less than expected in August 2024.
Back home, the Reserve Bank of India policy meeting is scheduled for October 7-9.
The markets are expected to be volatile in the short-term given the uncertainty around the quantum of the US Fed rate cut and the follow-up commentary. Against this backdrop here are the key levels to watch out for on the key benchmark indices.
Sensex
Current Level: 83,127
Upside Potential: 2.1%
Support: 82,725; 82,365
Resistance: 83,750
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On the upside, the Sensex can potentially rally to 84,865 levels; with interim resistance seen at 83,750. On the flip side, break and sustained trade below 82,365, can trigger a 1,000-point slide.
Nifty
Current Level: 25,425
Upside Potential: 1.5%
Support: 25,250; 25,150; 24,750
Resistance: 25,500; 25,550
The NSE Nifty 50 index was seen quoting at a new all-time high for the second time in the last three trading sessions. More importantly, on the weekly scale, the Nifty managed to negate the ‘Bearish Engulfing’ pattern formation with a ‘Bullish Engulfing’ pattern last week. Thus, the near-term bias has once again turned favourable.
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Nifty IT
Current Level: 43,400
Upside Potential: 5.8%
Support: 42,830; 42,350
Resistance: 43,990; 44,730; 45,330
The NSE Nifty IT index scaled a new summit at 43,583 in opening trades on Monday, and thereafter slipped into the negative zone. The price-to-moving averages action remains favourable for the tech-laced index.
Bank Nifty
Current Level: 52,130
Upside Potential: 2.9%
Support: 52,050; 51,750
Resistance: 52,340; 52,660
The Bank Nifty has recently given a breakout on the daily scale. The index is likely to exhibit a bullish bias as long as it holds above 52,050 levels; below which key support for the index is seen at 51,750.
First Published: Sep 16 2024 | 10:47 AM IST
