Nifty 8182/Sensex 26603/ Bank Nifty 18341
12 Advances /39 Declines/ 0 Unchanged
“Sensex, Nifty close lower on caution ahead of Fed meet outcome”
Equity benchmarks recovered from day's lows but remained range bound as investors awaited the decision of Federal Reserve policy meeting due tonight. More than 95 percent economists expect 25 basis points rate hike but the most important factors to watch out for would be its outlook on US economy, inflation and further rate hike.
The market has closed lower with the Nifty below 8200. The 50-share index was down 39.35 points or 0.5 percent at 8182.45 and the Sensex slipped down 94.98 points or 0.4 percent at 26602.84. About 913 shares have advanced, 1729 shares declined, and 149 shares are unchanged.
Axis Bank, Reliance, Infosys, M&M and TCS were top gainers while Coal India, ONGC, Cipla, Bharti Airtel and ITC were losers in the Sensex.
“Fed rate hike priced in, markets look for hints at 2017”
As markets looked ahead for the Federal Reserve (Fed) to confirm a widely expected 25 basis point hike in interest rates , more focus on the updated economic forecasts and particularly the “dot plot” showing policymakers’ expectations for the future path of interest rates, along with the follow-up press conference by Fed chief Janet Yellen, in an attempt to extrapolate how many more increases could be expected in 2017.
2017 rate hikes hints
Looking further down the road, markets have priced in the next tightening to occur in June 2017 with odds standing at 62.6%. That is the first policy meeting where the probability passes the 50% threshold.
According to the WSJ poll, economists on average expected the Fed to hike rates three times in 2017, a slightly more aggressive path than the median outcome of two increases that policymakers themselves penciled in with the last dot-plot released in September.
Strategists at Brown Brothers Harriman believe that the Fed will stand pat on expectations for two rate increases in 2017.
“While this is twice as fast as the pace in 2015 and 2016, it fits any definition of prudent and cautious,” they said.
“Too early to speculate on possible new fiscal policies”
Since the U.S. elections, markets have speculated that incoming President Donald Trump would embark on fiscal policies including infrastructure spending that could serve to not only foster economic growth, but also to usher in inflation, placing additional pressure on the Fed to tighten monetary policy to avoid falling behind the curve.
Several Fed officials have indicated that his election had not changed their outlook because there were too many unknowns with regard to what policies Trump would implement and what their overall impact on the economy would be.
New York Fed president William Dudley, known for being the policymaker most aligned with Fed chair Janet Yellen’s way of thinking, also judged last week that “it is premature to reach firm conclusions about what will likely occur.”
Key Results Today
Jk Bank
RESULT ANALYSIS & POLL
IMPORTANT RESULT: JK Bank
TECHNICAL LEVELS: Jk Bank
CMP 61.40 JK Bank has immediate Support at 59 and resistance at 65.
Break and sustain below 59 will take JK Bank to 56 or else it can test its resistance of 65 again. Break and sustain above 65 will take JK Bank to (70—71) mark.
Now what to expect??
Nifty and Bank Nifty Levels
Nifty has support at 8150 and resistance is intact at 8240---8300
Break and sustain below 8150 will take Nifty to Nifty to 8070—8030 else it could test its resistance level of 8240---8300 again.
On the other hand....
Bank Nifty has crucial support intact at 18300 and resistance is intact at 18650—18800
Break and sustain below 18300 will take Bank nifty to 17900---17500 else it can test its resistance of 18650—18800 again.
Today's Top Pick
KTK bank.. hurdle at 116 and support at 110
Below 110 will see sharp downside panic till 103---99.50 mark
Hurdle and stop loss seen at 116
More will update soon!!
