Nifty 50 index started the day on a flat note on Wednesday. It rallied 51 points intraday and crossed the psychological level of 8,800, however, selling pressure in the last leg of trade dragged the index from its intraday highs and it closed 1.25 points up at 8777.15. During the day, the 50-share index hits its intraday high and low of 8826.85 and 8757.30, respectively.
According to market experts, domestic equity markets have stuck in the trading range ahead of FOMC meet and now a decisive breakout would give further direction to the market.
Chandan Taparia, derivatives analyst, equity research, Anand Rathi Financial Services said, “Index formed a bearish candle with bigger upper shadows which indicates that bulls failed to take index higher in the absence of follow-up buying interest but bears were also not getting much grip on the market. Now, Nifty has to cross and hold above 8,820-8,850 zones to witness an up move towards 8,920 then 8,968 zones while holding below 8,750 might cause a profit booking decline towards 8,688 and lower levels.”
India VIX, or volatility index, on the National Stock Exchange (NSE) moved up by 0.16 per cent at 14.80 levels. “If VIX moves above 15.50 then we may see a change in short term market trend,” added Taparia.
Bank Nifty index also failed to hold 19,850 level on Wednesday. The index closed 0.12 per cent down at 19828.45. Bank Nifty opened the day 19,902 and touched a high and low of 19,937.85 and 19,749.95, in trade.