Thanks for pointing that out! Here’s the revised response:
Prashanth Tapse, Senior VP (Research), Mehta Equities
The market was anticipating three-rate cuts by the US Fed this fiscal, but the recent higher inflation reading suggests that the wait for rate cuts would be longer than expected. The sell-off in the Indian markets was a knee-jerk reaction to the rising inflation and fading hopes of a rate cut in the near future.
A sharp rise in crude oil prices and the rupee’s downward spiral also dampened sentiment. While the Indian economy is on a firm footing, negative news, especially from the global front, would at times halt the upward march of Indian equities.
Technically, bulls will heave a sigh of relief only above the 22,800 mark. Till then, it seems the bears are likely to rule the roost. The benchmark Nifty has strong support at 22,339-22,101 levels, and faces resistance at 22,810-23,100 levels.
Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas
The Nifty has closed below the lows of the previous three trading sessions on the daily charts, which indicates weakness. We believe the index is in the process of retracing the rise witnessed from 22,710-22,776, and has been consolidating thereafter. The next crucial support level stands at 22,370. On the upside, 22,620-22,650 shall act as an immediate hurdle.
