Rupak De, Senior Technical Analyst at LKP Securities:
The Nifty remained volatile during the day as the market participants adjusted positions according to the FOMC outcome. On the daily chart, Nifty formed a small-bodied candle with wicks on both sides, suggesting indecisiveness.
However, weakness may persist as long as it remains below 17700. On the lower end, support is visible at 17500.
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities:
While the Fed has maintained a hawkish stance, the steady pace of rate hikes and the slight improvement in the inflation situation shows that there is reduced pressure on the central bank to act aggressively.
We may see some correction in the US dollar once the central bank acknowledges improvement in inflation situation. Another challenge for the US dollar could be aggressive tightening by other central banks to control inflation as well as possible central bank interventions to support their currencies.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas
The Nifty witnessed sharp swings in both the directions on September 22. It attempted bounce twice during the day however faced resistance near the key hourly moving averages & the 20 DMA. Over there it attracted fresh round of selling. Thus 17700-17720 is acting as an immediate resistance zone.
The tough battle between the bulls & the bears is a typical characteristic of a consolidation phase. Within this consolidation, the index is expected to slide down to 17430 & subsequently to 17200 in the short term.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities:
Indian markets reacted mainly to the US Federal Reserve’s hawkish undertone on interest rate that fuelled pessimism amongst the investors. As expected, banking stocks bore the brunt that led to extended correction in local benchmarks.
Technically, Nifty has formed lower top formation on daily and intraday charts and closed below the 20-day SMA (Simple Moving Average), indicating continuation of weakness in the near future. The index has been consistently facing resistance at higher levels and at the same time regularly taking support near the 17500 level.
For the traders 17500 and 17700 would be the important level to watch out for and below 17500, the index could slip till 17400-17350 levels. On the flip side, a range breakout over 17700 could push the index up to 17800-17850.
Vinod Nair, Head of Research at Geojit Financial Services
Fed turned more hawkish than anticipated increasing its rate forecast to 4.4% by the end of 2022. The indication is that 125 bps more rate hikes can be expected in the next 2 policy meetings scheduled this year.
Following this, the US dollar index rose above 111, depreciating INR to beyond 80.
Indian stock market was able to sustain its resilience with limited cuts but if the rupee continues its weakness, domestic market would turn less attractive for foreign investors in the short-term, effecting performance.
Kunal Shah, Senior Technical Analyst at LKP Securities:
The Bank Nifty index witnessed selling pressure at higher levels and remains in a sell-on-rise mode as long as it stays below the level of 42,000.
The index immediate downside support stands at 40,500 and a breach below this will open gates for further downside toward the 39,000 level.
The index is trading in a tight range between 40,000-42,000 and a break on either side will give a directional move to the index.
Rupee Close:
Indian rupee closed at fresh record low on Friday. It fell 89 paise to close at 80.86 per dollar against previous close of 79.97.
Market Close: Benchmark indices ended lower for the second consecutive session on September 22 after Federal Reserve hiked the interest rates by 75 basis points.
At Close, the Sensex was down 337.06 points or 0.57% at 59,119.72, and the Nifty was down 88.50 points or 0.50% at 17,629.80. About 1793 shares have advanced, 1565 shares declined, and 137 shares are unchanged.
Power Grid Corporation, Axis Bank, HDFC Bank, Coal India and HDFC were among the major Nifty losers.
The gainers included Titan Company, HUL, Asian Paints, Eicher Motors and Maruti Suzuki.
Except power, FMCG and auto all other sectoral indices ended lower with Bank index shed over a percent.
BSE midcap and smallcap indices ended on positive note.
Mohit Ralhan, CEO at TIW Capital Group
The rate increase of 0.75% by the Fed was on the expected lines. Fed has been communicating its resolve to continue increasing rates till the time inflation comes down to 2%. Jerome Powell’s speech yesterday was probably the strongest one in terms of demonstrating a commitment to controlling inflation. The inflation in the USA is still above 8% and there is a long way to go. It means that the rate hikes are likely to continue till it tops 4.5%. The dot plot of the Fed now doesn’t indicate rate cuts before 2024.
As far as markets are concerned, the path of rate hikes looks more certain and the market participants who were hoping for an early reprieve on rate hikes, have been caught by surprise. As a result, S&P 500 declined by 1.7% yesterday. Near home, all eyes will be on RBI now and in all likelihood, RBI will need to follow through, to arrest the flight of capital and defend INR, even though the inflation in India is relatively under control. The markets are also pricing in the increasing threat of escalation by Russia as Putin appears to be doubling down including the option of using nuclear weapons. We are extremely cautious in the markets right now.
Swan Energy picks additional 3.36% stake in Veritas (India)Investor Swan Energy picked additional 3.36% stake or 9.01 lakh shares in Veritas (India) via open market transactions on September 20. It already held just 1,441 shares in the company earlier.
Lupin gets USFDA approval for Diclofenac Sodium Topical Solution
Lupin has received approval from the United States Food and Drug Administration (FDA) for its Abbreviated New Drug Application (ANDA), Diclofenac Sodium Topical Solution USP, 2% w/w to market a generic equivalent of Pennsaid Topical Solution, 2% w/w of Horizon Pharma Ireland DAC.
The product will be manufactured at Lupin’s facility in Pithampur, India.
Citi View On Brookfield India Real Estate Trust
Broking house Citi has initiated coverage with buy call on Brookfield India Real Estate Trust with a target at Rs 370 per share.
The company offers stable & growing cash flows with quality assets, said broking house.
The leasing has picked up & past trends suggest further improvement in occupancy. Its portfolio, especially powai assets, offers healthy MTM opportunity.
There is inorganic growth potential over the medium term, reported CNBC-TV18.
