Nifty 50, Sensex today: What to expect from Indian stock market in trade after US Federal Reserve signals rate cut

Indian stock market today: The Indian equity market indices, Sensex and Nifty 50, are likely to open with strong gains on Thursday led by positive global market cues amid dovish US Federal Reserve policy.

The US Federal Reserve on Wednesday left the key interest rates unchanged for the third time in a row citing easing inflation over the past year. The Fed Chair Jerome Powell-led Federal Open Market Committee (FOMC) now foresees three rate cuts next year.

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The trends on Gift Nifty also indicate a gap-up start for the Indian benchmark index. The Gift Nifty was trading around 21,222 level as compared to the Nifty futures’ previous close of 21,035.

The domestic equity indices ended with marginal gains on Wednesday, recouping intraday losses, with the benchmark Nifty 50 holding above 19,900 level.

The 30-share Sensex ended 33.57 points, or 0.05%, higher at 69,584.60, while the NSE Nifty 50 closed at 20,926.35, up 19.95 points, or 0.1%.

Nifty 50 formed a small candle with identical open and close with long lower shadow.

Also Read: 7 things that changed for the Indian stock market overnight – Gift Nifty to US Federal Reserve interest rate decision

“Technically, this pattern indicates formation of a doji type candle pattern. Normally, such doji formations after weakness calls for reversal on the upside, post confirmation. Nifty sustained the immediate support of 20,850 levels after violating it intraday. The market has recovered from another key support of 10-day EMA around 20,720 levels on Wednesday,” said Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities.

According to Shetti, the upside recovery of Wednesday from the immediate supports signal chances of further upside for the Nifty 50 in the short term.

“There is a higher possibility of Nifty moving again into all-time highs of 21,040+ levels in the near term,” he added.

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Here’s what to expect from Nifty 50 and Bank Nifty today:

Nifty Predictions

After a brief dip, the bulls demonstrated strength on December 13 by defending Nifty’s crucial support level of 20,800.

“The index witnessed a sharp recovery from the day’s low to the high point. The overall market sentiment remains bullish, and considering the current levels, traders are advised to initiate fresh long positions,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.

As per Shah, a stop-loss can be set at 20,800, targeting potential upside levels of 21,400/21,500 in the near term.

Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — December 14

Bank Nifty Predictions

The Bank Nifty index ended 5 points lower at 47,092 on December 13.

“Despite initial concerns, the Bank Nifty index displayed strength by not breaching the crucial support of 46,800 and instead witnessed a sharp rebound from lower levels. To sustain and further advance the upward momentum, the index needs to maintain levels above 47,200. A decisive close above 47,500, where call writers are active, could pave the way for additional gains, targeting levels of 48,000/48,500 in the upcoming,” Shah said.

Bank Nifty is also consolidating in the range of 46,500 to 47,590.

“On the downside, 46,800 is the crucial support, and until that is held, we can expect Bank Nifty to resume its upmove towards 48,000. Overall, the trend is positive, and dips towards 46,800–46,500 should be viewed as a buying opportunity,” said Mandar Bhojane, Research Analyst at Choice Broking.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.