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    Nifty may find key support at 17,493; market awaits Budget, Fed meeting this week: Experts

    Nifty has broken below an important support of 17,800. This indicates that there could be further selling pressure. In that case the index could drag lower to 16,750 levels. Immediate support for the index is placed at 17,500 levels. Resistance for the index is placed at 17,800 levels, says Apurva Sheth, Head of Market Perspectives and Research, SAMCO Securities.

    Rakesh Patil
    January 30, 2023 / 07:03 AM IST
    Curious,Worried,Business,Man,Looking,Down,At,The,Falling,Red
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    Indian market broke a two-week gaining momentum and lost more than 2 percent in a truncated week ended on January 27. For the week, the BSE Sensex shed 1,290.87 points or 2.12 percent to close at 59,330.9 and the Nifty50 fell 423.3 points or 2.34 percent to end at 17,604.35 levels.
    Vinod Nair, Head of Research at Geojit Financial services | The market appeared to be uneasy ahead of the upcoming Union Budget and Fed meeting, and FII were selling as funds are being shifted to other EMs because of attractive valuations. The Union Budget and FOMC are both scheduled for release on February 1st, and the market will take cues from the outcomes next week. Any increase in funding towards capital expenditure and rural areas within the constraints of the fiscal deficit controls will be favourable, while any unfavourable proposals, such as an increase in LTCG rates/ duration or populist measures due to the pre-election budget, could add to the bearish mood in the short-term. According to the most recent survey, the FOMC is expected to raise rates by 50 basis points at the upcoming meeting, and any decrease from this level will be considered positive. The recent trend of an uptick in crude prices due to a rebound in demand from China may add pressure to the domestic market in the near-term.
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    Vinod Nair, Head of Research at Geojit Financial services | The market appeared to be uneasy ahead of the upcoming Union Budget and the Fed meeting, and FIIs were selling as funds are being shifted to other EMs because of attractive valuations. The Union Budget and FOMC are both scheduled for release on February 1, and the market will take cues from the outcomes next week. Any increase in funding towards capital expenditure and rural areas within the constraints of the fiscal deficit controls will be favourable, while any unfavourable proposals, such as an increase in LTCG rates or duration or populist measures due to the pre-election Budget, could add to the bearish mood in the short-term. According to a survey, the FOMC is expected to raise rates by 50 basis points at the upcoming meeting, and any decrease from this level will be considered positive. The recent trend of an uptick in crude prices due to a rebound in demand from China may add pressure to the domestic market in the near-term.
    Ajit Mishra, VP - Technical Research, Religare Broking | Participants were already facing challenges due to mixed global cues and caution ahead of the Union Budget and this breakdown has further added to worries. We are now eyeing the 17,250-17,400 zone as the next support while any rebound toward the 17,750 level would attract selling pressure. We thus reiterate our view to prefer hedged positions and aligning trades according to the trend.
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    Ajit Mishra, VP - Technical Research, Religare Broking | Participants were facing challenges due to mixed global cues and caution ahead of the Union Budget and this breakdown has further added to worries. We are now eyeing the 17,250-17,400 zone as the next support, while any rebound towards the 17,750 level would attract selling pressure. We thus reiterate our view to prefer hedged positions and aligning trades according to the trend.
    Apurva Sheth, Head of Market Perspectives & Research, SAMCO Securities | Nifty has broken below an important support of 17,800. This indicates that there could be further selling pressure. In that case the index could drag lower to 16,750 levels. Immediate support for the index is placed at 17,500 levels. Resistance for the index is placed at 17,800 levels. With the Union Budget scheduled to be unveiled on February 1st, the following week will be jam-packed with activity. The markets will remain erratic as all eyes are on the finance minister's final comprehensive budget before the elections. The ongoing quarterly earnings will also have an impact on how each stock moves. The FOMC meeting will catch market players' eyes on a global scale. This week, the unemployment rate will be announced, and the markets will try to interpret the state of the world economy. Investors ought to exercise caution and put their money in companies with solid fundamentals.
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    Apurva Sheth, Head of Market Perspectives & Research, SAMCO Securities | The Nifty has broken below an important support level of 17,800. This indicates that there could be further selling pressure. In that case the index could drag lower to 16,750 levels. Immediate support for the index is placed at 17,500. Resistance for the index is placed at 17,800 levels. With the Union Budget scheduled to be unveiled on February 1st, the following week will be jam-packed with activity. The markets will remain erratic as all eyes are on the finance minister's final comprehensive budget before the elections. The ongoing quarterly earnings will also have an impact on how each stock moves. The FOMC meeting will catch market players' eyes on a global scale. This week, the unemployment rate will be announced, and the markets will try to interpret the state of the world economy. Investors ought to exercise caution and put their money in companies with solid fundamentals.
    Amol Athawale, Deputy Vice President - Technical Research at Kotak Securities | Last week, the Nifty traded below the 20 day SMA (Simple Moving Average) mark and also breached the important support level of 17800 and also formed a long bearish candle on weekly charts. Technically, a minor pullback rally is possible if the index trades above 17650. On the flip side, selling pressure is likely to accelerate only after the dismissal of 17550 and below the same the index could slip till 17400. Extended correction could drag the index till the 200 day SMA or 17300.
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    Amol Athawale, Deputy Vice President - Technical Research at Kotak Securities | Last week, the Nifty traded below the 20-day SMA (Simple Moving Average) mark and also breached the important support level of 17,800 and also formed a long bearish candle on weekly charts. Technically, a minor pullback rally is possible if the index trades above 17650. On the flip side, selling pressure is likely to accelerate only after the dismissal of 17,550 and below the same the index could slip till 17,400. Extended correction could drag the index till the 200 day SMA or 17,300.
    Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas | The Nifty broke the support zone of 17800-17760, which will now act as a resistance as per the principle of role reversal. On the downside, the Nifty has halted near the 61.8% retracement of the Sept – Dec 2022 rise & 200 DEMA, which are near 17550. Today’s low of 17493 will be a key support. If that is breached then the decline can continue till 17300.
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    Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas | The Nifty broke the support zone of 17800-17760, which will now act as a resistance as per the principle of role reversal. On the downside, the Nifty has halted near the 61.8% retracement of the Sept – Dec 2022 rise & 200 DEMA, which are near 17550. Today’s low of 17493 will be a key support. If that is breached then the decline can continue till 17300.