NSE Nifty 50 Index (India 50) could display a range-bound trading session on Thursday with a negative outlook, multiple analysts told Capital.com Federal Reserve chairman’s hint that new interest levels might lead towards a recession is likely to lead to more volatility, they said.
“Markets showing immediate reversal of upside bounce is not a good sign for the bulls to sustain the highs. Now, one may expect Nifty to slide down to the important support area of 15,200 levels in the next few sessions. Immediate resistance is placed at 15,560,” Nagaraj Shetti, technical research analyst at HDFC Securities said.
Hindustan Unilever share price will be in focus on Thursday as the company plans to conduct its annual shareholders meeting.
On Wednesday, US Federal Reserve chairman Jerome Powell stated that it is not trying to engineer a recession but all efforts are being made to contain inflation, even if doing so risks an economic downturn.
“On Thursday, markets will first react to the Fed chairman's speech. We reiterate our cautious stance on the markets and expect volatility to remain high in the near term. Meanwhile, traders are advised to keep a hedge position, while investors should focus on stock selection”, Ajit Mishra, vice president (research) at Religare Broking said.
“The market is currently in a very fragile mode as any signs of negativeness is prompting traders to exit stocks at will. Technically, the Nifty has also formed a bearish candle which suggests further weakness from the current levels. On intraday charts, the index has formed non directional formation while the texture of the chart is suggesting that a range bound activity is likely to continue in the near future,” Shrikant Chouhan, head of equity research (retail) at Kotak Securities said.
Hindustan Unilever (HUL) will conduct its annual shareholders meeting on Thursday. HUL, the Indian subsidiary of British consumer firm Unilever had recorded a 11% rise in FY22, with a turnover of more than INR500bn, according to a local media report.
Telecom stocks will be in focus after the government removed spectrum usage charges ahead of the 5G airwave auction. The move, which comes ahead of the 5G spectrum auction, is expected to reduce the overall cost of spectrum purchase.
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Nifty on Wednesday
On Tuesday, Nifty ended down 1.44% at 15,413.30 on Wednesday, with metals, realty, power and oil & gas indices falling the most.
“Asian shares were mostly lower Wednesday as markets shrugged off a rally in the US and awaited congressional testimony by Fed Chair Jerome Powell. European stocks hit fresh one-year lows on Wednesday as a fall in oil and metal prices hurt commodity-related stocks,” Deepak Jasani, head of retail research at HDFC Securities said.