Indian equity markets may start off the day facing downward pressure, as there is a mixed outlook for the global market and traders await information from the US Federal Reserve regarding its monetary policy in the near future. GIFT Nifty is at 25,902 this morning, down 57 points from yesterday's close in Nifty futures.

The investor caution leading up to a key Federal Reserve meeting is evident in the closings of the Sensex and Nifty on Tuesday; both indexes posted losses on Tuesday compared to their prior closes. The Sensex lost 436.41 points or 0.51% to finish the day at 84,666.28, and the Nifty declined by 120.90 points or 0.47% to close at 25,839.65.

Sensex Outlook

The Chart of the Sensex for the day indicates there are lower highs forming on a downward trendline; however, an oversold condition in the last few trading days will help produce a short-term price recovery.

If you are an intraday trader, pay close attention to 84,400; it is likely to be the most critical support level. If the Sensex stays above 84,400, expect a move up towards resistance levels of around 85,000-85,200. If the Sensex closes below 84,400, we can expect further selling pressure, and potentially a steep drop to 84,000.

Nifty 50 Outlook

The Nifty 50 has shown a Doji candle pattern, which signals indecision concerning support levels. A number of technical analysts predict that after breaking above the 25,700 area, the Nifty will be able to continue higher to reach the intermediate resistance levels of 26,100 to 26,200.

If the index goes below 25,660, downside pressure may increase, with the next strong support level seen at 25,500-25,300. On the upside, 26,000-26,325 remains a key resistance, where profit-booking is likely to emerge.

Heavy call writing at the 26,000 strike with over 78 lakh contracts added has created a strong supply ceiling for the Nifty. 

Bank Nifty Outlook

The Bank Nifty was able to form a bullish candle on Tuesday despite exhibiting intraday volatility and posted a closing price of 59,222.35. The Bank Nifty's overall trend remains bullish as long as it stays above the lower area (58,800-58,700 level). However, some analysts believe the index is following a sell-on-the-rise pattern. 

If the Bank Nifty falls through this zone, it could decline to the support zone (58,300-58,000); in order for the Bank Nifty to regain an upward momentum with a target of 60,000, it needs to break above the resistance area (59,500-59,700).

Also Read: US Stock Market Today: NASDAQ 100 and S&P 500 Rise 0.2% as Traders Await Fed Rate Decision

Broader Market & Global Cues

Sectoral performance remained mixed: IT, autos, and metals declined, declining between 0.3% to 1%, while realty, telecom, capital goods, and PSU banks advanced with gains between 0.5% to 1%. Midcaps gained 0.3% and smallcaps jumped 1.1%, helping cushion weakness.

Globally, the investors' eyes are mostly on the US Fed’s rate decision, the ongoing tariff issue, and the persistent FII outflows. The Indian rupee fell to 90.15, weighed down by demand for dollars from corporates and foreign investors.