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The uncertainty regarding the US Fed rate hike was keeping the markets nervous and now, as Jerome Powell again decided to keep the rates intact, bulls have taken a breather today. With a very positive start to the day, all thanks to green global cues, the session remained more or less in the favour of bulls.
The index closed the day gaining 144.1 points to 19,133.25, while was up 489.57 points to 64,080.9. But other smaller pockets also did quite well and both the and indices closed with a gain of over 1.3% each.
Looking at the sectoral breath, all sectors ended the session in the positive territory, with the index leading the pack with a 2.52% gain.
Now it looks like the fall we witnessed in the previous week has finally made a bottom. The low of 18,837.85 is less likely to be breached in the next 6 trading sessions, not just because the index has started to bounce back but also due to a sharp fall in .
Today, VIX crashed 8.05% to 11.08 as the looming uncertainty regarding the US Fed has passed by with no dent to investors’ sentiment. This is a reflection of improving confidence in market participants and therefore, the level of 19,800 (round off) will likely be acting as a strong support from here.
However, that does not mean the trend has become positive. It’s just a halt in the downtrend and in my opinion, the market will likely trade sideways from here for the next few sessions. The resistance of 19,233 has to be breached before Nifty 50 confirms its attempt to rally back to 19,400.
Disclosure: I have positions in Nifty 50 options.
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X (formerly, Twitter) – aayushxkhanna
Read More: Small-Cap Breaks Major Hurdle with an 8% Jump, Depicts More Upside!
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