Nifty, Sensex end marginally higher; markets eye Fed rate cut hints

Sectorally, Nifty Energy, FMCG, Infra, Realty and Auto were the top gainers, while Nifty Metal, Pharma, IT fell the most.

Benchmark indices Nifty and Sensex shrugged off losses to end slightly higher on March 20. Investors remained on their toes ahead of the US Fed meeting outcome. Buying in energy, auto names supported the gains, while metals dragged.

"Robust FII & DII inflows sustained the market. As per 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 & small caps are likely to lag large caps driven by premium valuations, in the short-term," said Vinod Nair, Head of Research, Geojit Financial Services.

The Sensex closed 89.64 points or 0.12 percent higher at 72,101.69, and the Nifty rose 21.60 points or 0.10 percent to end at 21,839.10. About 1,557 shares advanced, 2,075 declined, and 114 were unchanged.

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Sectorally, Nifty Energy, FMCG, Infra, Realty and Auto were the top gainers, while Nifty Metal, Pharma, and IT fell the most. Meawhile, Bank Nifty ended in the red for the 9th consecutive day.

"A sense of caution is warranted going ahead, focusing more on the stock-centric front. Also, one needs to follow the 21,550-21,500 levels for Nifty thoroughly with proper risk management, refrain from bottom fishing, and wait for clear bullish reversal signals before considering aggressive long positions," said Sameet Chavan, Head Research, Technical and Derivative - Angel One.

Technical view

"On the daily charts, we can observe that the Nifty has taken support around the 78.6% Fibonacci retracement level of the previous rise from 21,530-22,526. The momentum set up on the hourly time frame suggests exhaustion of selling pressure as there are signs of a positive divergence and is currently having a positive crossover, "said Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas

In terms of price pattern, the daily candle has taken form of a Doji pattern which suggests indecision among market participants regarding the direction as both bulls and bears are trying hard to defend their respective boundaries, Gedia said, adding, "this could lead to consolidation and the range could be 21,700-22,000."

"Bank Nifty has found support at the lower end of the rising channel and daily lower Bollinger band placed at 45,800. The hourly momentum indicator has a positive crossover which is a buy signal. Thus, we can expect a recovery to 46,,800 – 46,950 over the next few trading sessions," he said.

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