Indian equity markets ended in red for the third consecutive day tracking weak global markets due to hawkish FOMC meeting minutes. Both BSE Sensex and NSE Nifty 50 indices ended nearly 1 per cent lower on Thursday. Despite trading in green for quite some time, Bank Nifty failed to hold gains and closed marginally lower at 37,557. Except pharma, all other sectoral indices ended lower. In broader markets , BSE midcap and smallcap indices ended in the red. The short-term trend of Nifty continues to be negative, according to analysts. RBI’s mid quarter policy meet outcome is expected to show fresh direction for the market. If announcements are in-line with market expectations, indices will trade positively they said.

“The benchmark index corrected consecutively for the third day in a row ahead of the hawkish Fed outcome. Technically, the nifty index had tested a resistance at the upper Bollinger Band formation and traded below it that suggests weakness in the counter. Moreover, the index has also covered the weekly gap and moved below the prior week close. A momentum indicator RSI has turned lower from the overbought territory. However, an indicator MACD is still showing positive crossover on the daily scale. On a four hourly chart, the index has formed a Bearish Marubozu candlestick, indicating bearishness for the coming day. At present, the index is having support at 17430 levels while resistance is placed at 17800 levels. On the other hand, Bank nifty has support at 36850 levels while resistance at 38000 levels.”

“Volatility increased as the market approached the RBI policy meet outcome. The latest sectoral outperformers like metals, power and oil & gas sectors were the most hit including mid & small caps. If announcements are in-line with market expectations, like rates remaining unchanged, inflation forecast moderately increased and robust economic outlook maintained, then the market will trade positively considering corrections during the week and falling crude prices or else challenges will prevail”

“The Bank Nifty index ahead of the RBI policy remains subdued with major selling pressure continuing from HDFC bank. The index needs to close above 38000 level for resuming the uptrend. A clear direction will be visible once the policy is announced”

“Nifty has fallen from the rising channel on the daily chart which suggests a waning bullishness. The daily RSI is in a bearish crossover. The trend looks negative for the near term. On the lower end, support is visible at 17450 whereas resistance is seen at 17750-17800”

“A reasonable negative candle was formed on the daily chart with minor upper shadow. Technically, this pattern indicate a continuation of weakness in the market. The positive sequence of higher tops and bottoms is into play. After the formation of new higher top at 18114 on 4th April, the market is showing weakness from the highs towards the formation of new higher bottom. But, there is no confirmation of any higher bottom reversal as of now.”

“The short term trend of Nifty continues to be negative. Presently, the daily 10 day EMA is offering support 17600 levels and the crucial support is placed around 17450-17500 levels as per the concept of change in polarity. Friday’s outcome of RBI’s mid quarter policy meet is expected to show fresh direction for the market. However, we expect Nifty to witness upside bounce from the lows of around 17550-17450 levels in the next couple of sessions.”

“Negative sentiment continued for the third straight session as the US Fed’s hawkish stance has raised concerns of steeper interest rate hikes going ahead while investors also trimmed their positions ahead of RBI policy, although most of the experts believe the MPC may maintain status quo on policy rates. The fall was largely due to profit taking in Reliance Industries and other energy stocks amid volatility in global crude oil prices. Technically, on intraday charts the Nifty is still holding lower high series formation and has also formed a bearish candle which is largely negative. However, in the last three days the index has corrected over 475 points and after a short term correction, it is currently trading near the important retracement support level. The market has completed one leg of correction and there is a strong possibility of a quick intraday relief rally if the index trades above 17720. Above the same, the index could move up to 17800 -17850.”