All eyes on Fed
All attention is turned to the conclusion of the Fed's rate-setting meeting later tonight. Futures trading indicates a nearly 100% probability that the Fed will raise interest rates by another quarter point, but markets see a greater than 80% probability of the Fed keeping rates the same in September, according to the CME FedWatch Tool.
Nifty rose for second consecutive session with 98 points gain, to close at 19778 lifted by gains in L&T and Tata Motors. L&T jumped 3% as its board approved a share buyback worth Rs 10,000 crore, at Rs 3,000 per share.
Nifty managed to reclaim its level above its 5 days EMA, placed at 19736. Nifty Mid and small cap Indices gained by 0.44 and 0.17% respectively to close at highest level in this rally. Advancing shares outnumbered the declining shares as advance decline ratio stood at 1.17 on BSE, highest in last five days.
Cash market volumes were lower as compared to recent averages. Amongst the sectoral Indices, Nifty PSU Banks, FMCG and Reality gained the most while Nifty OIL/GAS and Consumer durable Index ended in the red.
Recent swing low of 19615 should be the stoploss in trading long positions. On the upside 19900-20000 range could act as an immediate resistance.