The Indian stock market started the day on a negative note following the Fed’s announcement of its first interest rate hike in three years, along with plans for further hikes later in the year. The Nifty 50 index began at 23,195.25, down by 22.35 points or around 0.1%, while the Bank Nifty was down by 165.85 points versus the previous close. The Sensex was down 153.83 points at 74,182.62. 

The broader markets were under pressure today as the Nifty Midcap 100 index ended flat, while the Nifty Smallcap 100 index closed marginally lower.

Today, the rupee opened lower at Rs. 96.01 per dollar on Thursday as against the previous close of Rs. 95.95.

On September 16, FIIs sold equities worth Rs. 2,000 crore, while DIIs continued to support the markets by purchasing equities worth Rs. 3,900 crore during the day.

Sensex Outlook

Technically, the Sensex recorded an intraday pullback from lower levels after a slow start. However, the short-term trend remains weak.

“For day traders, 74,300 will act as an immediate resistance zone. Below these levels, weak sentiment is likely to continue. On the downside, the market could retest the 74,000-73,500 levels. On the upside, above 74,300, the pullback can extend towards 74,600-75,000,” said Shrikant Chouhan, Head, Equity Research, Kotak Securities.

Nifty 50 Outlook

On Wednesday, Nifty 50formed a small green candle with wicks on either side of it, which signals indecision among traders. The daily RSI is still in the oversold zone but has come back up from yesterday’s low, showing some improvement in momentum.

The immediate support for the index remains near 23,110-23,120, which represents the lows of the previous two trading sessions. A decisive close above 23,460 would provide the first indication of improving short-term sentiment.

On the downside, a break below the 23,110 support level would indicate renewed weakness and may extend the decline toward 23,070, followed by 22,850.

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Bank Nifty Outlook

Bank Nifty is consolidating near the 50% Fibonacci level of the previous upward move from 52,783 to 58,706. Nevertheless, the general undertone remains weak since the index keeps trading below both the short- and long-term moving averages.

“Going forward, the 55,700-55,600 zone is likely to serve as an important support area for the index. A sustained breach below 55,600 could intensify selling pressure and open the door for further downside towards 55,000, followed by 54,500 in the near term. On the upside, the 56,700-56,800 zone is expected to act as a significant resistance band, and the index would need to surpass this hurdle to improve the short-term technical outlook,” said Sudeep Shah, Head, Technical and Derivatives Research at SBI Securities