Mr. Devarsh Vakil, Deputy Head of Retail Research, HDFC Securities on today's market performance.
Indian equity markets ended with strong gains today. strong global cues and steady foreign flows are helping Indian markets outperform its emerging market and Asian peers. From the day's high of 17919, Nifty witnessed profit booking and fell more than 130 points in the closing hours to finish the day near 17780. Short term support for the Nifty is seen at 17500 odd levels, which happens to be 34 days EMA. Resistance for Nifty is seen at 18100 odd levels. For last 6 weeks, Nifty has been in to tight consolidation zone. Breakout from 17500-18100 range would give directional move in the Nifty.
All indices ended on the positive side in today's session with Pharma, Healthcare and Consumer Durable leading the race. Advancing shares outnumbered the declining shares on Tuesday where advance decline ratio stood at 1.55 on BSE. Volumes were lower side where cash market volumes on NSE stood lower by 10% as compared to average of last ten days.
The Federal Reserve is likely to raise the federal funds target rate by 75 bps on Sept. 21, global equity markets seems to have discounted this rate hike. The People's Bank of China kept its one-year and five-year loan prime rates (LPR) unchanged, in line with predictions.