Nifty at key support as traders weigh Fed decision, crude oil and holiday-thin trading

Mumbai: Indian equities are set for a volatile holiday-shortened week as investors track the US Federal Reserve’s interest rate decision, elevated crude oil prices and other global monetary policy signals. The Nifty enters the week near a crucial support zone after declining for five consecutive weeks.Domestic markets will remain closed on Monday for Ganesh Chaturthi, leaving investors to react on Tuesday to developments in global equities, crude oil and bond yields.Fed Decision Takes Centre StageThe biggest global trigger will be the US Federal Reserve’s policy decision and economic projections on Wednesday, September 16. The announcement is scheduled for 2 pm EDT, or 11:30 pm IST.Markets are pricing in a strong probability of a 25 basis point rate hike after the latest US inflation numbers. Headline consumer inflation rose 0.4 per cent month on month and remained at 3.4 per cent annually, while core inflation increased 0.3 per cent sequentially but eased to 2.4 per cent year on year.For Indian equities, the Fed’s commentary and outlook could prove more important than the rate decision itself. Balanced guidance could provide some relief to risk assets. FIIs Sell ₹1,602 Crore Worth Of Indian Equities This Week, Nifty Declines 0.5% Amid Market VolatilityThe Bank of England and Bank of Japan policy decisions will also remain on investors’ radar.Nifty Extends Weekly DeclineThe Nifty ended Friday at 23,398.10, down 79.70 points or 0.34 per cent, while the Sensex slipped 120.83 points, or 0.16 per cent, to 74,781.76.The Nifty touched a three-month low during the week. Nifty Bank extended its decline to a third straight week, while weakness also spread to midcap and small-cap stocks.FPIs Pour ₹16,621 Crore Into Indian Equities In August First Half, Foreign Inflows Extend After ₹20,200 Crore July BuyingRealty was among the biggest sectoral laggards, while healthcare and pharmaceutical shares showed relative strength.Crude Above 104 Dollars Adds PressureBrent crude settled at 104.61 dollars a barrel after briefly approaching 110 dollars, adding to concerns over inflation, corporate margins and India’s import bill.With crude remaining elevated and the Fed decision approaching, global cues are likely to dictate market direction during the shortened trading week.

Indian equities enter a holiday-shortened week with the Nifty at a crucial support zone after five consecutive weekly declines. The US Fed’s policy decision, FOMC projections, crude oil prices, global bond yields and foreign flows will drive near-term sentiment. Analysts expect volatility to remain elevated but see scope for buying at lower levels, with the Nifty’s 23,000–23,300 zone in focus.