The Indian market closed lower on June 17 in line with the fall in other Asian markets after the US Federal Reserve signalled to raise rates sooner than expected. The Federal Reserve officials on June 16 moved their first projected rate increases from 2024 to 2023 and opened talks about when to pull back on the $120 billion in the monthly bond purchase, said a Reuters report. The benchmark indices closed in the red for the second consecutive day. The Sensex was down 178 points at 52,323, while the Nifty closed 76 points lower at 15,691. "Indian equities traded mirroring global peers after the optimistic comments by Fed acknowledging the strengthening of the economy. The rate hike has been advanced by a year to 2023 but is not the key point of issue to the market,” Vinod Nair, Head of Research at Geojit Financial Services said. The quick normalisation of the economy and a strong job market can lead to tapering of the bond-buying plan. It could lead to a tightening of bonds yields, which will impact the pricing of equity asset,” he added. Sectorally, buying was seen in IT, as well as FMCG stocks, while selling pressure was visible in power, infrastructure, metals realty, and utility stocks. On the broader markets front, the BSE midcap index fell 1.29 percent and the smallcap index 0.58 percent. Here’s what experts suggest investors should do on June 18:Expert: Chandan Taparia, Vice President | Analyst-Derivatives, Motilal Oswal Financial Services Technically, the Nifty formed a bullish candle on the daily scale as it closed higher than its opening zones but ended 75 points lower. Now, the index has to hold above 15,700 to witness an up move towards 15,800 and 15,900, while on the downside, support can be seen at 15,600 and 15,550. Sumeet Bagadia, Executive Director at Choice Broking The index has confirmed the Evening Star candlestick at the top of the trend, which suggests correction in the counter. Moreover, the index gave a closing below 21 SMA and Middle Bollinger Band formations, which indicates bearishness in the near term. In addition, momentum indicator RSIs (14) & Stochastic witnessed a negative crossover on the daily time frame. The Nifty has immediate support at 15,550, whereas 15,900 may act as a crucial resistance zone. Gaurav Ratnaparkhi, Head, Technical Research, Sharekhan by BNP Paribas The index opened gap down with more than 100 points, however, the bulls rushed in swiftly to provide support. As a result, the index recovered and turned positive only to witness another round of selling. The index slipped to test a couple of recent swing lows, which are near 15,600–15,560. The 20-day moving average is present in this range. Thus 15,600-15,560 is a key support zone to watch out for. If the bulls manage to hold on to this support zone, the index can start the next leg on the upside. On the other hand, a breach of this support zone would push the index further down towards 15,400. Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities The Nifty and Sensex could reach fresh levels on June 18 if the indices don't close below 15,550 and 51,700, respectively. On an immediate basis, 15,770 and52,500 and 15,850 and 52,700 would be major hurdles. Below 15,550 and 51,700, the Nifty and Sensex can gradually slide to 15,400 and 51,300 or 15,300 and 51,000 in the worst-case scenario. Disclaimer:The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
