After a sharp move on Monday, yesterday was a volatile session trading in narrow range. F&O data indicates market currently in oversold zone. WPI inflation @ 15.9%.
Wall Street ended with minor cuts; Nasdaq was flat to positive with 0.18% gain.
VIX @ 21.89: Still within comfort level. Will be watching VIX closely today as going into US FOMC outcome tonight.
Approach on Indices: Evenly poised for 500 points move on Nifty on either side. F&O data indicates highly oversold zone.
Market View: 75 bps hike by US Fed is factored in and Indian market and F&O data indicates – currently in highly oversold zone. After yesterday F&O data reading, we see strong chance of sharp bounce, still market will go into event on a cautious note.
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