Nifty advances on the Fed decision.

The Federal Reserve repeated their pledge on Tuesday to keep the interest rates less than 0.25 (From 0% to 0.25%) percent for an “extended period “. After this decision, US markets reacted positively, with the Dow Jones closes 0.41percentage up (Dow Jones at 10685) . This two news positively affected the Dow Jones market and their stocks.
While considering the Indian equity market, India’s Finance Minister expressed hope that the economy would soon return to a high growth trajectory, but he also said that we have to cautious about the high inflation and heavy borrowings. The Wholesale Price India (CPI) based inflation has already touched 9.89 in February. Inflation numbers for March will be announced in mid –April which is expected higher than the previous value.
Yesterday all the Asian markets were in green because of the Tuesday’s news. Now the market is waiting for the Bank of Japan (BOJ) press conference announcement. Some economist expects that BOJ may expand their lending program. Today’s expectations are that OPEC will keep oil output cuts. This is positive news for Indian oil companies like ONGC, BPCL Reliance Industries for the very short period. Advance taxes paid by foreign banks operating in the country have been declining by over 58% in the fourth quarter. It built-up the short position in Bank nifty traded in to the exchange.

As per technical point of view, we can see a strong resistance level of two month high that is5290 if it sustained at this level with a heavy volume then we can see a upward resistance of 5546.In downside we can find a crucial support level at 5110 if it breaks the support level then we can a find a down trend till 5065.

Dipak Sharma

dipak.sharma@xtb.in

www.in.xtb.com