Nifty to reclaim 18750 or bears to drag index after Fed rate hike- 7 things to know before market opening bell

Nifty to reclaim 18750 or bears to drag index after Fed rate hike? 7 things to know before market opening bell

Indian frontline indices are likely to open on a muted note on weekly F&O expiry. SGX Nifty hinted at a flat to negative start for domestic equities as Nifty futures traded marginally lower at 18734 levels. In the previous session, BSE Sensex rose 145 points to 62,678, while the NSE Nifty 50 climbed 52 points to 18,660. “We continue to remain upbeat on the markets and sense that the higher bottom is in place around 18350 levels. In such a scenario, one should continue with the recent stance of buying on dips with immediate support seen in the range of 18540 – 18500 levels. Traders should continue to focus on NIFTY MIDCAP 100 as trading opportunities from this basket can give staggering returns in the near term,” said Rajesh Bhosale, Technical Analyst, Angel One.Key things to know before share market opens

Global market watch: Asia-Pacific markets traded lower on Thursday. The S&P/ASX 200 fell 0.19%. Japan’s Nikkei 225 traded marginally lower as investors digest trade data from Japan and South Korea. South Korea’s Kospi also fell 0.44%. Overnight in the US, Wall Street stocks closed lower in volatile trading following a policy announcement by the Federal Reserve that raised interest rates by 50 bps. The Dow Jones Industrial Average fell 0.42%, the S&P 500 lost 0.61%, and the Nasdaq Composite dropped 0.76%.

Levels to watch: “Nifty’s critical support at 18550, and critical resistance at 18750. The critical support level for Bank Nifty is 43589. The 44750–45000 zone is where Bank Nifty will likely see immediate resistance on the rise. The good news is that Bank Nifty is currently signalling a significant intraweek breakthrough on daily charts against the backdrop of the recent series of higher high/low keeping intact on all time-frames,” said Ameya Ranadive, Equity Research Analyst, Choice Broking.

FII and DII data: Foreign institutional investors (FIIs) net bought shares worth Rs 372.16 crore, while domestic institutional investors (DIIs) net purchased equities worth Rs 926.45 crore in the Indian share market on 14 December, according to the provisional data available on the NSE.

Stocks under F&O ban on NSE: Indiabulls Housing Finance, BHEL, Delta Corp, and GNFC are the four stocks under the National Stock Exchange’s F&O ban list for 15 December. Securities thus banned under the F&O segment include companies where derivative contracts have crossed 95% of the market-wide position limit.

Fed slows rate hike: The Federal Reserve slowed down the rapid pace of interest-rate hikes while signaling that borrowing costs, now the highest since 2007, will rise more than investors anticipate as central bankers ensure that inflation keeps cooling. The Federal Open Market Committee (FOMC) raised benchmark rate by 50 basis points to a 4.25% to 4.5% target range, its highest level in 15 years. The policymakers also forecast that their key short-term rate will reach a range of 5% to 5.25% by the end of 2023.

UK inflation falls: British inflation fell more than expected in November after it hit a 41-year high in October, raising hopes that the price surge has peaked and offering some comfort to the Bank of England (BoE) as it prepares to raise interest rates again. The annual rate of consumer price inflation dropped to 10.7% in November from 11.1% in October, the Office for National Statistics (ONS) said, a bigger fall than the decline to 10.9% which economists forecasted in a Reuters poll.