Market snaps 4-day winning streak as investors await US Fed meet outcome

Benchmark indices broke the four-day winning streak and ended near the day’s low on June 16 with investors awaiting US Fed policy outcome later today. The Sensex was down 271.07 points, or 0.51%, at 52,501.98 and the Nifty was down 101.80 points, or 0.64%, at 15,767.50.

“The Nifty managed to close above the support of 15,700 which is a positive sign. If we break this level on a closing basis, the current trend would need to be evaluated again. A risk-reward trade can be considered at these levels where the target would be 15,900-16,000 and a stop could be placed below the closing of 15,700. Until we do not break 15,700 on a closing basis, the current trend remains bullish,” said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.

On the sectoral front, except IT and FMCG, all other indices ended in the red with metal index falling nearly 3 percent and infra index losing 1.2 percent. BSE Midcap and Smallcap indices fell 1 percent and 0.6 percent, respectively.

Adani Ports, Tata Steel, JSW Steel, Hindalco and Power Grid Corp were among the top losers, while gainers included Tata Consumer Products, NTPC, Nestle, ONGC and HUL.

Stocks & sectors

On the BSE, metal index fell 2.5 percent, while power, realty and capital goods indices shed 1 percent each.

Among individual stocks, a volume spike of more than 300 percent was seen in Indiabulls Housing Finance, ICICI Lombard General Insurance Company and NALCO.

Long buildup was seen in HPCL, Mphasis and NTPC, while short buildup was seen in LIC Housing, Power Grid and Hindalco.

More than 450 stocks, including HCC, Infosys, Mastek and Oil India, hit a fresh 52-week high on the BSE.

Technical View

Nifty formed a bearish candle on a daily scale and wiped out all the gains of the last few sessions.

“The index has to hold above 15,750 zones to witness an up move towards 15,900 and 16,000 zones while on the downside, support can be seen at 15,700 and 15,600 zones,” said Chandan Taparia of Motilal Oswal Financial Services.