Indian equity markets showed mixed trends in mid-day trading on Wednesday, as investors remained cautious ahead of the crucial Federal Reserve meeting.
The benchmark Sensex traded at 83,025.99, down 53.67 points or 0.06%, while the Nifty50 stood at 25,382.85, lower by 35.70 points or 0.14% at 1:05 PM.
Shrey Jain, Founder and CEO of SAS Online, commented on the market sentiment, saying, “Benchmark indices Sensex and Nifty continued their upward trajectory, demonstrating increasing confidence ahead of the upcoming Federal Reserve meeting.” He added, “The Nifty has been consolidating around the 25,400 level, and if it maintains this position, a rally towards 25,600 could be on the horizon.”
Options data analysis suggests a continuation of this consolidation pattern. “The 25,500 call strike exhibits significant open interest of approximately 47 lakh shares, while the 25,400 put strike shows substantial open interest of around 45 lakh shares,” Jain noted.
The broader market displayed a negative bias, with 2,295 stocks declining against 1,565 advances on the BSE. Notably, 255 stocks hit their 52-week highs, while 22 touched their 52-week lows.
The IT sector emerged as the major laggard, with the Nifty IT index plummeting 3.19% to 42,031.20. Top losers in this space included Mphasis (-5.41%), LTTS (-3.95%), Persistent Systems (-3.74%), TCS (-3.58%), and HCL Tech (-3.31%).
On the flip side, financial stocks led the gainers’ list. Shriram Finance surged 3.66%, followed by Bajaj Finance (3.32%), ICICI Bank (1.88%), Bajaj Finserv (1.61%), and SBI (1.38%).
Looking ahead, Jain cautioned, “We expect rapid and volatile market movements contingent on the Federal Reserve meeting outcomes. Consequently, it is prudent to refrain from holding overnight positions.”
The Bank Nifty index is anticipated to target the 52,500 level for today’s expiry, with immediate support likely at 52,000. “The 52,500 call strike has noteworthy open interest of about 34 lakh shares, while the 52,000 put strike reflects an open interest of approximately 36 lakh shares,” Jain explained.
As the markets await the Fed’s decision, investors remain on edge, balancing optimism with caution in this period of economic uncertainty.