Trends in the GIFT Nifty indicate a strong start for the broader index in India, with a gain of 146 points or 0.67 percent.

The benchmark Sensex and Nifty indices are likely to open a gap-up on March 21 as trends in the GIFT Nifty indicate a strong start for the broader index with a gain of 146 points.

The market closed with moderate gains on March 20 after a choppy session, as investors remained cautious ahead of the Federal Open Market Committee (FOMC) meeting outcome.

The market failed to hold on to the opening gains and gyrated between gains and losses throughout the day but buying in auto and energy names helped the benchmark indices close higher.

At close, the Sensex was up 89.64 points or 0.12 percent at 72,101.69, and the Nifty was up 21.60 points or 0.10 percent at 21,839.10 on March 20.

The pivot point calculator indicates that the Nifty 50 may take immediate support at 21,742 followed by 21,690 and 21,606. On the higher side, the index may face resistance at 21,911 followed by 21,963 and 22,047 levels.

GIFT Nifty

Trends in the GIFT Nifty indicate a strong start for the broader index in India, with a gain of 146 points or 0.67 percent. The Nifty futures were trading around the 22,071 level.

US Markets

Wall Street's main stock indexes closed higher on Wednesday after the Federal Reserve eased investor jitters by keeping borrowing costs unchanged and reinforcing expectations that rates could be cut as many as three times this year.

The Fed's policy statement described inflation as remaining "elevated" and it raised economic projections for economic growth and lowered its projection for the unemployment rate from estimates it provided in December.

The Dow Jones Industrial Average rose 401.37 points, or 1.03 percent, to 39,512.13, the S&P 500 gained 46.11 points, or 0.89 percent, to 5,224.62 and the Nasdaq Composite gained 202.62 points, or 1.25 percent, to 16,369.41.

Asian Markets

Nikkei hit a fresh all-time high as Asia markets climbed after the Federal Reserve maintained its forecast for three rate cuts while holding the Federal Funds rate at 5.25-5.5 percent.

US Fed leaves key lending rate unchanged

Federal Reserve officials maintained their outlook for three quarter-point rate cuts this year but forecast fewer cuts than before in 2025 following a recent uptick in inflation.

Officials decided unanimously to leave the benchmark federal funds rate in a range of 5.25 percent to 5.5 percent, the highest since 2001, for a fifth straight meeting. Policymakers signaled they remain on track to cut rates this year for the first time since March 2020, but they now see just three reductions in 2025, down from four forecasts in December, based on the median projection.

NCLAT directs PSBs to not take coercive action against IL&FS, its board

The National Company Law Appellate Tribunal (NCLAT) has directed 11 public sector lenders not to take coercive action against IL&FS and its group companies till its next hearing on May 14. A two-member NCLAT bench headed by Chairperson Justice Ashok Bhushan also issued notices to the banks, along with the Reserve Bank of India (RBI), directing them to file a reply.

Dollar

The dollar rose for a fifth straight session on Wednesday, while stock and bond markets trod water as traders braced for what could be a crucial Federal Reserve meeting later in the day.

Gold Prices

Gold was little changed on Wednesday as traders waited for the Federal Reserve's interest rate signals at the end of the U.S. central bank's meeting and Chair Jerome Powell's remarks later in the day.

Crude

Oil prices fell on Wednesday after hitting multi-month highs in the previous session, as investors braced for the US Federal Reserve's interest rate policy announcement later in the day.

FII and DII data

Foreign institutional investors (FIIs) net sold shares worth Rs 2,599.19 crore, while domestic institutional investors (DIIs) bought Rs 2,667.52 crore worth of stocks on March 20, provisional data from the NSE showed.

Stock under F&O ban on NSE

The NSE has added Tata Chemicals to the F&O ban list for March 21, while retaining Balrampur Chini Mills, Biocon, Hindustan Copper, Indus Towers, Piramal Enterprises, RBL Bank, and Zee Entertainment Enterprises on the said list. BHEL and SAIL were removed from the said list.