Indian equity benchmarks ended lower on Wednesday, breaking their four-session gaining streak. Investors were cautious of US Federal Open Market Committee’s meeting outcome, which later came out as expected with an interest rate hike of 75 basis points, along with an indication of future hikes though in smaller increments. 

“Though the Nifty declined slightly from the highs, the short-term uptrend status remains intact. Sharp weakness from near the hurdle of 18,100-18,200 is missing,” Nagaraj Shetti, Technical Research Analyst at HDFC Securities said. Further sustainable upside could emerge only above 18,200 levels. Next lower supports to be watched are at 17,900 levels, the market expert said.

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Indian Indices

The Sensex fell 215.26 or 0.35% to 60,906.09 while the Nifty declined 62.55 or 0.34% to 18,082.35 at the end of trading session on Wednesday. The Sensex moved in a high-low band of 61,209.65 and 60,794.39. There were 09 stocks advancing against 20 stocks declining, and 1 stable on the index. The Nifty traded in a range of 18,178.75 and 18,048.65. There were 15 stocks advancing against 35 stocks declining on the index.

Broader Indices

The broader indices ended mixed with the BSE MidCap index down by 0.12% while the SmallCap index was up by 0.23%. The top gaining sectoral indices on the BSE were Metal up by 0.67%, Healthcare 0.43%, Energy 0.14%, and Oil and Gas 0.09%, while Telecom down by 1.31%, Realty 1.01%, TECK 1.00%, Auto 0.75%, and Power 0.65% were the top losing sectoral indices on BSE.

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India VIX Index

Nifty or India VIX, a gauge of the market’s expected volatility over the near term, rose 3.30% to 16.66 on Wednesday.

Support and Resistance level

The key support level for the Nifty is placed at 18,054, followed by 18,023 & 17,973. If the index moves up, the key resistance levels to watch out for are 18,153 followed by 18,184 and 18,233, according to pivot charts.

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US Markets 

The S&P 500 fell 96.41 points, or 2.50%, to 3,759.69 on Wednesday.

The Dow Jones Industrial Average fell 505.44 points, or 1.55%, to 32,147.76

The Nasdaq fell 366.05 points, or 3.36%, to 10,524.80

The Russell 2000 index of smaller companies fell 62.25 points, or 3.36% to 1,789.14.

Asian Markets

Asian markets ended mostly mixed on Wednesday with the KOSPI Composite up by 0.07%, the Nikkei 225 down by 0.06%, Shanghai Composite up by 1.15%, and the Hang Seng up by 2.41%.

European Markets

European markets ended lower on Wednesday. UK’s FTSE 100 declined 0.58%, France’s CAC fell 0.81% and Germany’s DAX fell 0.61%.

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Major Headlines

US Federal Reserve hikes interest rates by 75 basis points

The United States Federal Reserve raised the key interest rates by 75 basis points on Wednesday, November 2, 2022, in line with investors’ expectations to curb soaring inflation and signaled plans to keep raising them, though possibly in smaller increments.

The Fed estimates interest rates will need to increase to 4.6% next year to bring inflation down toward the central bank’s 2% target.

The policy decision set the target federal funds rate in a range between 3.75% and 4.00%, the highest since early 2008. The US Fed has hiked interest rates at its last six meetings starting in March 2022, marking the fastest round of rate hikes since former Fed Chair Paul Volcker’s fight to control inflation in the 1970s and 1980s.

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Bulk Deal data

Kairus Shavak Dadachanji bought 1,50,00,000 shares in Shrem Invit at Rs 104 per share on the NSE.

Trust Capital Serv India Pvt Limited sold 84,00,000 shares in Shrem Invit at Rs 104 per share on the NSE.

Lodha Bhupesh Kumar bought 1,05,000 shares in Veto Switchgear Cable Ltd at Rs 118.39 per share on the NSE.

Everest  Corporation sold 51,000 shares in Richa Info Systems Ltd at Rs 99.75 per share on the NSE.

Pratyush Mittal bought 54,232 shares in Geekay Wires Limited at Rs 69.25 per share on the NSE.

DII and FII data

Foreign institutional investors (FIIs) have bought shares worth a net of Rs 1,436.30 crore, whereas domestic institutional investors (DIIs) sold shares worth a net of Rs 1,378.12 crore on November 01, as per data available on the NSE.

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NSE F&O Ban

Punjab National Bank and LIC Housing Finance Ltd securities have been placed under the F&O ban for November 03. 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.