Fed Holds, No Guidance: Banks in Focus Today

The US Fed kept rates unchanged on 28 Oct, in line with expectations. It gave no fresh forward guidance, and the chair reiterated a data-dependent approach. GIFT Nifty is indicating a weaker start of around 70 points, so the first half-hour to one hour of trade could set the tone. On the charts, Nifty took resistance near the falling trendline around 22,750 yesterday and settled near 22,700. It continues to trade inside a narrowing range between the falling trendline above and the rising trendline below. RSI at 53 shows neutral to mildly positive momentum. A sustained move above 22,750-22,760 would bring 22,820 and 22,900 into view. Sustained trade below 22,600 would put 22,540 and 22,380 on the radar. The 22,680-22,630 zone is the pivot cluster for the day. Banks are in focus because of their sensitivity to foreign flows, US yields and rupee moves. HDFC Bank,

and Kotak Mahindra Bank carry heavy index weight and FPI holdings, so how they react to the Fed outcome is worth observing. When a central bank holds without new guidance, markets look to price action; the opening hour and key levels help show how participants are reading it. Disclaimer: This is for educational purposes only and is not investment advice. Please consult your financial advisor before making any investment decisions. SEBI Registered Research Analyst — INH000025212.