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Taking Stock | Market ends lower ahead of Fed meet outcome; FMCG gains, power stocks drag

Shree Cements, Adani Ports, IndusInd Bank, Power Grid Corp and UltraTech Cement were among the major Nifty losers.

September 21, 2022 / 04:14 PM IST

The Indian equity market snapped a two-day winning streak and ended lower in the highly volatile session on September 21 as market participants look ahead to the US Fed policy meeting outcome on interest rates later tonight.

At Close, the Sensex was down 262.96 points or 0.44% at 59,456.78, and the Nifty was down 98 points or 0.55% at 17,718.30.

Shree Cements, Adani Ports, IndusInd Bank, Power Grid Corp and UltraTech Cement were among the major Nifty losers.

The gainers included Britannia Industries, ITC, HUL, Apollo Hospitals and Coal India.

"Markets across the globe were trading with considerable volatility ahead of the Fed policy announcement. A 75bps hike by FED was factored in by the markets, while reports of mobilising Russian forces in Ukraine has escalated geopolitical tension and fears of rising inflation," said Vinod Nair, Head of Research at Geojit Financial Services.

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"Any military escalation will have a significant effect on the world & domestic economy. This will have an influence on the near-term trend of the global market and implications on local market can be high as it is trading at premium prices compared to the world," he added.

On the sectoral front, Nifty FMCG index rose 1 percent. On the other hand, metal, pharma, Information Technology, energy bank and auto indices fell 0.5-2 percent.

Also Read: What the Federal Reserve will do today? Follow these numbers

IndexPricesChangeChange%
Sensex57,426.921,016.96 +1.80%
Nifty 5017,094.35276.25 +1.64%
Nifty Bank38,631.95984.20 +2.61%
Nifty 50 17,094.35 276.25 (1.64%)
Fri, Sep 30, 2022
Biggest GainerPricesChangeChange%
Hindalco390.5519.35 +5.21%
Biggest LoserPricesChangeChange%
Asian Paints3,342.45-42.35 -1.25%
Best SectorPricesChangeChange%
Nifty PSU Bank2995.0087.65 +3.01%
Worst SectorPricesChangeChange%
Nifty FMCG44405.6549.40 +0.11%

Stocks and sectors

On the BSE, FMCG index added 1 percent, while capital goods, oil & gas, realty and power indices shed 1-2 percent each.

Broader indices - BSE midcap and smallcap indices fell 0.6 percent each.

A short build-up was seen in Ambuja Cements, Shree Cements and Adani Enterprises, while a long build-up was witnessed in Britannia Industries, Granules Indian and Marico.

Among individual stocks, a volume spike of more than 100 percent was seen in Indiabulls Housing Finance, Mahanagar Gas and City Union Bank.

More than 150 stocks touched their 52-week highs on the BSE. These included ITC, Welspun Corp, Varun Beverages, Page Industries and CG Power and Industrial Solutions.

Outlook for September 22

Rupak De, Senior Technical Analyst at LKP Securities

Nifty has closed above 17700 for the day following a range-bound trading session. On the daily chart, the index has fallen below the falling trend line suggesting a waning bullishness. The daily RSI is in a bearish crossover on the daily chart indicating a falling momentum.

The trend for the near term may remain sideways to positive as long as the index closes above 17700. However, a decisive fall below 17700 may trigger a correction in the market. On the lower end, below 17700, Nifty may fall down towards 17500/17350. On the higher end, resistance is visible at 17850-17900.

Ajit Mishra, VP - Research, Religare Broking:

Markets traded volatile for yet another session and lost over half a percent. After the initial positivity, the Nifty index pared all its gains as the session progressed and finally settled at 17718.35; down by 0.5%.

Markets will first react to the Fed meet outcome in early trades on Thursday. Besides, the scheduled weekly expiry would add to the volatility.

Amid all, indications are in the favour of further consolidation, so we suggest traders to stay light and focus more on the risk management part. On index front, 17,400-17,500 zone would acts a cushion in Nifty while rebound towards 17,900-18,000 zone may attract selling pressure.

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.

 
Rakesh Patil
first published: Sep 21, 2022 03:59 pm
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