“The technical bounce back in Nifty by 140 points yesterday is unlikely to continue in the unfavourable near-term market scenario. Such bounce backs happen in an oversold market. The major drag on the market continues to be the negative news on the India-US trade front. President Trump’s comment that “ India may have to pay 20-25 % tariff” is very negative from the short-term market perspective.
The FOMC decision today is unlikely to impact the market. A rate cut by the Fed is unlikely today. More important would be the Fed commentary on the evolving economic outlook.
Sustained FII selling in the cash market for the seventh continuous trading day is another headwind for the market. Spike in Brent crude to $ 72 is another negative. Weakness in the market due to these headwinds can be used by long-term investors to slowly accumulate fairly valued high quality stocks.”
