Ahead of Market: 10 things that will decide stock market action on Wednesday
interest rate cut and commentary, settling in the green for the second straight session. Nifty managed to end at a lifetime high of 25,418.55 on a closing basis. It was up by 34.80 points or 0.14% over Monday’s closing. Its 89.4-point trading range is the smallest in two weeks.
Here's how analysts read the market pulse:
Commenting on the day's action, Om Mehra, technical analyst at SAMCO Securities, said that Nifty maintained a cautious tone ahead of a major global event in the form of US Federal Reserve’s FOMC meet. «The trend remains positive as long as Nifty sustains above the key support level of 25,270. The resistance remains around the 25,550-25,580 zone, which could cap upside momentum in the short term,» Mehra said.
US markets
Major indices on Wall Street were trading in the green on expectations of an interest rate cut, with the Federal Reserve's FOMC beginning today. While Dow 30 was trading at 41,793.10, up by 171.03 points or 0.41%, S&P 500 was hovering around 5,665, gaining by 31.90 points or 0.57%. Nasdaq Composite was trading at 17,734.70, higher by 142.58 points or 0.81%.
Tech View
A breakout from the recent range-bound pattern could provide a clear direction for the Nifty, Rupak De, LKP Securities said, placing immediate support at 25,350. A fall below this level might lead to the unwinding of put option writing positions, potentially triggering a correction toward 25,000, he warned. On the upside, resistance is seen at 25,500 and a strong upward move may be expected if Nifty breaks above this
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