Pre-market action: Here's the trade setup for today's session

Synopsis

Markets experienced volatility on the monthly expiry day, resulting in a largely unchanged ending. Analysts suggest that a decisive move above the 20-DEMA could enhance recovery prospects. While Foreign Portfolio Investors net bought shares, Domestic Institutional Investors were net sellers on the same day. The rupee closed slightly higher against the US dollar, attributed to potential intervention from the Reserve Bank.

Markets remained volatile on the monthly expiry day, ending largely unchanged as mixed cues kept participants cautious. Going forward, analysts say a decisive move above the 20-DEMA, currently around 22,825, would strengthen the prospects of further recovery towards 23,100-23,300 zone. Failure to cross this hurdle, however, could cause the recent rebound to lose momentum.

STATE OF THE MARKETS

Tech View: The overall setup suggests a sideways to mildly positive outlook in the short term. On the downside, 22,600 remains an immediate support, while 22,800 is the key hurdle. A sustained move above 22,800 could open the door for a test of 23,000. Hence, traders should adopt a level-based trading strategy.

India VIX: India VIX, which is a measure of the fear in the markets, fell 4.4% to settle at 16.40 levels.

US stocks end higher

An AI-fueled tech rally sent US stocks to a higher close on Tuesday as third-quarter reporting season gained steam, while the Federal Reserve convened for its penultimate meeting of the year.

Read more: Ahead of Market: 10 things that will decide stock market action on Wednesday

Stocks in F&O ban today

SAIL

Securities in the ban period under the F&O segment include companies in which the security has crossed 95% of the market-wide position limit.

Read more: Jio’s big-bang listing may give it stock market’s No.2 crown after Reliance Industries

FII/DII action

Foreign portfolio investors net bought shares worth Rs 4,240 crore on Tuesday. DIIs, meanwhile, were net sellers at Rs 1,250 crore.

Rupee

The rupee closed marginally up by 3 paise at 95.12 against the US dollar on Tuesday, backed by likely intervention from the Reserve Bank amid elevated crude oil prices and a stronger greenback ahead of the US Federal Reserve's policy decision.

Disclosure: This article has been written by Podishetti Akash, who is not a SEBI-registered Research Analyst or an Investment Adviser. Podishetti Akash and his ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclosures here

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