The key support level for NSE Nifty 50 has slipped to 24,180, analysts said, after the benchmark index declined for the second consecutive day on Tuesday.

Technically, the index has formed a “big red candle on a daily chart” and has broken the 100-day exponential moving average support around the 24,360 levels, which indicates weakness, according to Hrishikesh Yedve, assistant vice president for technical research at Asit C. Mehta Investment Interrmediates Ltd.

“In the immediate term, 24,180 will serve as significant support levels. If index sustains below 24,180, then weakness could extend towards 24,000–23,900 levels,” the analyst added.

The current market texture is weak, but a fresh selloff is possible only after the “dismissal of 24,275” level. Below this level, the Nifty can slip to 24,200–24125, according to Shrikant Chouhan, head of equity research at Kotak Securities Ltd.

The crucial resistance is seen at around 24,400 levels. If the index crosses this level, then “we could expect a pullback rally up to 24,500–24,525”, Chouhan said.

The Bank Nifty has been consolidating within a narrow range of 52,500–54,000, Yedve said. “Either side’s breakout will decide the index’s future move. Until then, range bound consolidation will persist.”

FII/DII Activity 

Overseas investors stayed net sellers of Indian equities for the second straight day on Tuesday, while domestic investors turned net buyers.

Foreign portfolio investors offloaded stocks worth Rs 6,409.9 crore, while domestic institutional investors mopped up stocks worth Rs 2,706.5 crore, according to provisional data shared by the National Stock Exchange.

F&O Cues

The Nifty December futures were down by 1.36% to 24,401 at a premium of 65 points, with the open interest up by 1.73%.

The open interest distribution for the Nifty 50 Dec. 19 expiry series indicated most activity at 25,000 call strikes, with the 23,900 put strikes having maximum open interest.

Market Recap

The benchmark equity indices crashed on Tuesday amid weak global cues ahead of the outcome of the US Federal Reserve’s meeting. The NSE Nifty ended 332.25 points or 1.35% down at 24,336 and the BSE Sensex closed 1,064.12 points or 1.3% lower at 80,684.45.

Eleven out of the 12 sectoral indices on the National Stock Exchange fell, with the PSU Bank, Metal, Energy, Oil & Gas and Auto falling the most. Only the Nifty Media closed flat.

The slide in the broader indices was not as sharp as the benchmarks, as the BSE MidCap and SmallCap ended 0.65% and 0.52% lower, respectively.

Major Stocks In The News

  • Edelweiss Financial Services: The Reserve Bank of India has lifted business restrictions on ECL Finance Ltd. and Edelweiss Asset Reconstruction Co., citing satisfaction with the corrective measures implemented by the companies.

  • Ambuja Cements: Ambuja Cements Ltd.’s board approved merger of its recently acquired subsidiaries—Sanghi Industries Ltd. and Penna Cement Industries Ltd.—with itself through separate schemes of arrangement on Tuesday.

  • Exide Industries: Exide Industries Ltd. announced an additional investment of approximately Rs 100 crore in its wholly owned subsidiary, Exide Energy Solutions Ltd.

Global Cues 

Stocks in the Asia-Pacific region fluctuated on Wednesday, as traders prepared for this year’s final policy decision of the US Federal Reserve and the Bank of Japan.

Japan’s Nikkei was 218 points, or 0.56%, higher at 39,144, while Australia’s S&P ASX 200 was up 22 points, or 0.27%, at 8,336, as of 6:55 a.m. Futures contracts pointed to gains in Hong Kong. 

Stock benchmarks in China closed positive after a two-day decline, while Hong Kong shares continued their fall on Tuesday.

The Japanese yen was trading 0.18% higher ahead of the central bank’s policy meeting, with less than 20% chance of a rate hike, according to Bloomberg News.

The dollar index—which tracks the greenback’s performance against a basket of 10 leading global currencies—was trading 0.03% lower at 106.92. Bitcoin was trading at $106,346.28 mark.

The two-day Federal Open Market Committee meeting concludes on Wednesday, Dec. 18. The US Federal Reserve is expected to cut rates by 25 bps, lowering the target range to 4.25-4.50%, according to Bloomberg. Attention will also be on Fed Chair Powell’s stance on rate decisions in the new year. The final print of US third-quarter GDP will be released on Thursday.

Meanwhile, retail sales increased at a firm pace in November, although industrial production unexpectedly declined for the third straight month. US stocks closed Tuesday’s session lower.

The S&P 500 and the tech-heavy Nasdaq Composite fell 0.39% and 0.32%, respectively, on Tuesday. The Dow Jones Industrial Average slipped 0.61%. The yield on 10-year Treasuries was little changed at 4.40%. 

Crude oil prices traded higher after a two-day drop. The Brent crude was trading 0.11% higher at $73.27 a barrel as of 7:06 a.m. IST, and the West Texas Intermediate was up 0.09% at $70.14. 

Money Market

The Indian rupee settled at a new record closing low of 84.90 against the US dollar, merely 10 paise away from the 85-mark, as global cues and dismal domestic trade data weighed on the currency.

The domestic currency had opened at 84.90, after Monday’s close of 84.87, before falling to the day’s low of 84.93

. Read more on Markets by NDTV Profit.If the Nifty plunges below 24,180, then the index’s weakness can extend towards 24,000–23,900 levels, one of the analysts said.  Read MoreMarkets, Business, Notifications 

​NDTV Profit