Domestic market is expect remain volatile and open weak on Wednesday. Gift Nifty at 19722 indicates a negative bias. Analysts expect the market to remain volatile to the impending monthly expiry of F&O contracts on Thursday. Besides, Q1 result season will add to volatility. According to analysts, so far, the result season is a mixed bag with banking reporting strong numbers but IT companies declaring muted figures. All eyes will be on US Federal Reserve, that will set to pronounce its verdict on rate. The market is widely expecting a 25 basis points increase, any adverse comments could spoil the global bull party.
Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd, “We expect cautiousness in the market, ahead of the Federal Reserve’s policy meeting on Wednesday where a 25bps hike is expected.
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Shrikant Chouhan, Head of Research (Retail), Kotak Securities Ltd, said: “Markets were volatile this week but moved in a range as investors in a cautious mood are engaged in selective profit-taking, after the markets had run-up to record highs over the past few weeks. The US FOMC meeting outcome on Wednesday is the major catalyst although the market is not expecting any major surprise on the interest rate front. However, the Fed’s comment would be keenly watched as it would provide some clarity on the rate movement going ahead.
Equities across Asia-pacific region are mostly down except Australian and Singapore markets in early deal on Wednesday. However, analysts expect consolidation phase to continue at domestic markets and individual stocks to see higher activity.
Post market hours, L&T and Tata Motors came out with strong set of numbers. Besides, the mega Rs 10,000 crore buyback proposal by Larsen & Toubro will help benchmark indices to sustain at current levels. Foreign portfolio investors to turned buyers on Tuesday, after remaining sellers over the last three days.
Rajesh Bhosale, Technical Analyst at Angel One, said: Despite the subdued performance of the key indices, there were several individual stocks that saw remarkable movements. Specifically, the Metal and Cement sectors performed exceptionally well, and moving ahead, we may expect stock-specific actions ahead of the monthly settlement.