Closing Bell: Nifty ends near 14,700, Sensex declines 562 pts; PSU banks worst hit

The trading in USDINR spot is very lackluster ahead of the Fed’s outcome. The forex market will react to this FOMC policy only through the prism of US Treasuries. If Powell presents a dovish narrative then we may see a modest gain in the emerging market currencies later this week. However, any signal or inclination to start raising interest rates in 2023, and no expression over inflation will fuel the dollar rally. In USDINR spot 72.40-72.50 is acting as a strong support zone, a break of which can push prices towards 72.20-72.25, while 73 will act as a crucial resistance.

Indian market remained in negative territory as investors traded cautiously ahead of the US Fed meeting coupled with a resurgence in covid cases. Adding to that, the rise in international crude prices is also dragging the Indian market.

Global markets also displayed a weak opening as it awaits the final decision of the FOMC meeting today, which will decide the trend of the market in the short-term. On a consensus basis, an accommodative policy is expected by FED, which will help the global market to stabilize.

Rupee traded little weak as the Fed policy awaits which can give hints of strengthening the US economy. Which can keep dollar-driven Currencies under some pressure. Levels in which rupee can range is between 72.40-72.90 in coming sessions.

The market witnessed a retrace to the support level around the Nifty 50 Index level of 14,750. The market's short-term technical conditions are favoring a sideways correction is in the process. While holding above 14,750 is the key to prevent further move down. Aggressive traders can use sustaining above 14,750 as a buying opportunity. However, below this level market is likely to gain downside momentum and open the gate for a movement until 14,540. As such, a strict stop at 14,640 is advisable. The momentum is observed indicators like RSI, MACD to stay neutral along with the market breadth, further strengthening the view of a short-term sideways correction.

Indian rupee ended flat at 72.54per dollar, amid sellingsawin thedomestic equity market.It opened marginally lower at 72.58 per dollar against Tuesday's close of 72.55 and traded in the range of 72.51-72.61.

The index has continued to respect the 14,700-14,750 support range. Short to medium term weakness will be triggered once we break 14,700 on a closing basis. Thereafter 14,300-14,400 is a possibility. On the upside, unless we do not get past 15,300, we will not see a bullish trend. The current range is between 14,700-15,300 and unless we do not get past either of them, we will continue to see uneventful trading sessions.

Ahead of the FOMC meeting, the Bank Nifty fell for the third consecutive day to drag Indices down almost 1.5% today. Metals and PSU stocks succumbed to profit-taking today. The broader market did witness value-buying by savvy investors expecting an acceleration in the pace of vaccination.

Indian benchmark indices ended in negative territory on March 17 amid selling seen in across the sectors as investors remain cautious ahead of the U.S. Federal Reserve policy outcome.

At close, the Sensex was down 562.34 points or 1.12% at 49,801.62, and the Nifty was down 189.20 points or 1.27% at 14,721.30. About 818 shares have advanced, 2115 shares declined, and 138 shares are unchanged.

ONGC, BPCL, Tata Motors, Adani Ports and Coal India were among the major losers, while gainers included ITC, TCS, Infosys and HDFC.

All the sectoral indices ended in the red with Nifty PSU Bank index fell 4 percent. BSE Midcap and Smallcap indices shed 2 percent each.

Indian benchmark indices ended in negative territory on March 17 amid selling seen in across the sectors as investors remain cautious ahead of the U.S. Federal Reserve policy outcome.

At close, the Sensex was down 562.34 points or 1.12% at 49,801.62, and the Nifty was down 189.20 points or 1.27% at 14,721.30. About 818 shares have advanced, 2115 shares declined, and 138 shares are unchanged.

ONGC, BPCL, Tata Motors, Adani Ports and Coal India were among the major losers, while gainers included ITC, TCS, Infosys and HDFC.

All the sectoral indices ended in the red with Nifty PSU Bank index fell 4 percent. BSE Midcap and Smallcap indices shed 2 percent each.

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