Sensex, Nifty likely to start flat as signalled by SGX Nifty

Indian benchmark indices Sensex and Nifty today are expected to start flat with positive bias amid positive handover from US markets ahead of the Fed meet

Indian stock markets today are expected to start flat with positive bias amid positive handover from US markets ahead of the Fed meet. Dow Jones, S&P 500, and Nasdaq ended a percentage higher on Tuesday. The SGX Nifty signals a positive start for the Nifty today, up 20 points at 6:50 AM.

Indian benchmark indices Sensex and Nifty ended sharply higher on Tuesday led by buying interest in heavyweights like Reliance Industries and Bajaj Finance. The Sensex ended higher by 445 points at 58,074, while the Nifty gained 119 points to 17,107.50. “ Nifty on 21st March witnessed a gap-up opening following its global clues and carry forward its previous day’s momentum. The index traded in a muted bullish tone throughout the day and extended its gain in the final hour of the trading session and closed at 17,107.50 levels with a gain of 0.70%,” said Rohan Patil of SAMCO Securities.
Key Levels to track for Nifty today are 16,950 on the downside, whereas on the upside, the resistance for Nifty today largely stands at 17,200-17,250. Nifty  Bank today if sustains above 39,500, could stand as a big positive for traders, said market experts.
Foreign Institutional Investors continued to remain net sellers for the 9th consecutive session in the Indian markets on Monday, being net sellers to the tune of Rs 1,454 crore in the cash markets, provisional data from exchanges showed. In the last seven days, FIIs have sold to the tune of Rs 13,000 crore in the cash market, shows data from exchanges. Domestic Institutional Investors on the other hand continued to remain net buyers if Indian equities worth Rs 1,946 crore, provisional data showed.
The US Federal Reserve will announce its decision on policy later in the evening today. Experts believe that the markets can be volatile ahead of the markets and hence advise investors to remain cautious ahead of the big event. “We advise investors to remain cautious, as markets are likely to remain volatile ahead of Fed’s meeting outcome on Wednesday late evening. US Fed’s commentary amidst the ongoing financial crisis would be of key importance and can provide some direction to the markets,” said Siddhartha Khemka of Motilal Oswal Financial Services.
Stocks to watch today are Hindustan Zinc, Vedanta, Tata Motors, Devyani International, Greenlam Industries and Tata Power besides others.