Stock market today: Sensex, Nifty 50 eke out gains ahead of US Fed meet outcome

Stock market today: Domestic market benchmarks the Sensex and the Nifty 50 managed to end with mild gains on Wednesday, March 20, despite enduring bouts of volatility ahead of the US FOMC’s (Federal Open Market Committee) interest rate decision.

The US Federal Reserve is expected to maintain the rates steady. Investors and analysts are placing greater emphasis on Fed Chair Jerome Powell's press conference following the policy decision announcement. They seek signals regarding the US central bank's perspective on persistent inflation and the future trajectory of interest rates.

Also Read: There may be no US Fed rate cut in 2024 as inflation remains sticky, says Madhavi Arora of Emkay

"While the US Fed is likely to maintain its stance and keep the rate unchanged, its commentary will hold importance as it would provide insights into the Central bank’s future rate action," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services.

Also Read: US Federal Reserve meeting day 2: What does a rate decision mean for Indian stock market?

Sensex and Nifty 50 opened with mild gains but traded volatile during the session. Eventually, Sensex closed at 72,101.69, up 90 points, or 0.12 per cent while the Nifty 50 settled with a gain of 22 points, or 0.10 per cent, at 21,839.10.

Midcap and smallcap indices underperformed the largecap indices. The BSE Midcap index closed with a nominal gain of 0.05 per cent while the Smallcap index settled with a loss of 0.14 per cent.

Shares of Reliance Industries, ITC and SBI contributed the most to the gains in the Sensex index. On the flip side, shares of HDFC Bank, Axis Bank and Tata Motors were the top drags on the index.

Some 86 stocks, including Maruti Suzuki, CG Power and Industrial Solutions and Sapphire Foods India, hit their fresh 52-week highs while 79 stocks, including Hindustan Unilever, Bata India, Page Industries, Zee Entertainment and Vedant Fashions, hit their fresh 52-week lows in intraday trade on the BSE.

Top gainers in the Nifty 50 index today

Shares of Eicher Motors (up 4.25 per cent), Maruti Suzuki India (up 2.83 per cent) and Nestle India (up 2.18 per cent) ended as the top gainers in the Nifty 50 index. Overall, 27 stocks ended higher in the Nifty 50 pack.

Top losers in the Nifty 50 index today

Shares of Tata Steel (down 2.25 per cent), Tata Consumer (down 2.08 per cent) and Tata Motors (down 1.40 per cent) closed as the top losers in the Nifty 50 index.

Also Read: Top Gainers and Losers today on 20 March, 2024: Eicher Motors, Maruti Suzuki India, Tata Steel, Tata Consumer among most active stocks; Check full list here

Sectoral indices today

Most sectoral indices ended with losses today, with Nifty Metal (down 0.79 per cent) as the top loser.

Nifty Bank slipped 0.16 per cent while the Private Bank index fell 0.29 per cent. Nifty PSU Bank ended with a mild gain of 0.05 per cent.

Among the gainers, Nifty Oil & Gas (up 1.29 per cent) stood at the top, followed by Nifty Realty (up 0.62 per cent).

Experts' views on markets

According to Vinod Nair, Head of Research at Geojit Financial Services, Indian markets closed with modest gains amid favourable global sentiment and solid direct tax collection. Moreover, robust FII and DII inflows sustained the market.

"As per the latest market consensus, the odds of a rate cut in June have reduced. The US Fed is likely to delay the cut rate to the latter part of the year due to a resilient economy. Domestic mid and small caps are likely to lag large caps driven by premium valuations, in the short-term," said Nair.

Ajit Mishra, SVP of technical research at Religare Broking sees the possibility of a breather after the recent fall but the tone may remain negative.

"Participants should continue with the 'sell on the rise' approach until Nifty decisively reclaims the 22,100 level. We reiterate our preference for index majors over others and avoid adding to the loss-making positions," said Mishra.

Also Read: Bull run ends here, massive correction on cards! Phillip Capital sees Nifty 50 falling 15% to 18,550

Technical views on Nifty 50

Mandar Bhojane, a research analyst at Choice Broking pointed out that the Nifty 50 has broken down daily trendline, hinting at a potential reversal of the uptrend. It has dipped below the critical short-term moving average, signalling weakening momentum.

Moreover, the Relative Strength Index (RSI) has also displayed a bearish crossover, indicating mounting selling pressure. Key levels to monitor include resistance at 22,000 and support at 21,700. A breach below 21,700 could trigger further correction towards the 21,600 levels, said Bhojane.

Examination of the open interest (OI) data reveals the highest OI on the call side at the 22,000 strike price, followed by the 22,300 strike price. On the put side, the highest OI was observed at the 21,500 strike price, Bhojane observed.

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