All eyes will be on Jerome Powell later tonight as to what decision does the FOMC comes out with after the US inflation print for November came in below expectations. The news led to a brief rally on Wall Street but the indices cooled off from the day's high to post modest gains.

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Back home, Indian markets continue to rebound from key support levels. The Nifty 50 gained over 100 points on Tuesday, while the Nifty Bank ended at a record high. PSU Banks continued to rally, ending higher in eighth out of the last nine trading sessions. Stocks like UCO Bank ended in a 20 percent circuit along with Indian Overseas Bank, which also saw double-digit gains.

Siddharth Sedani of Anand Rathi Shares & Stock Brokers calls for caution within the PSU Banking space, saying that one must be selective within the sector as there are still a lot of bad loans and slippages. He only called for State Bank of India as an investment theme while suggesting investors to book profits among the other state-run lenders.

Today's trading session will also mark the final day of Sula Vineyards' IPO while that of Landmark Cars will enter day 2. For the first two days, the IPO of Sula has been subscribed nearly 60 percent with the retail portion almost fully subscribed.

Also Read: Sula Vineyards IPO: The five key risk factors associated with the issue

In an interaction with CNBC-TV18, Gary Schlossberg of Wells Fargo Investment Institute mentioned that the Indian economic growth will hold up well despite the slowdown, and that India looks better than China over the next one year.

What do the charts suggest for Dalal Street?

Jai Bala of cashthechaos.com believes that 18,130 is a very crucial level for the Nifty 50, adding that the index will see some short-term resistance at levels of 18,665 to 18,680. With regards to the Nifty Bank, Bala said that the trend remains on the upward trajectory as long as the index manages to hold levels of 42,900 on the downside. For the Nifty Bank, the resistance is seen between 44,700 - 45,000.

According to Nagaraj Shetti of HDFC Securities, the short-term trend of the Nifty 50 is positive and any sustained move above levels of 18,650 can open the doors for a new all-time high on the index. Immediate support for the index is seen at levels of 18,500.

Here are key things to know about the market ahead of the December 13 session:

SGX Nifty

On Wednesday, Singapore Exchange (SGX) Nifty futures — an early indicator of the Nifty index — gained 91 points points or 0.49 percent to 18,792.5, thereby pointing to another positive opening for the market.

Global Markets

Asian markets have also opened with gains this morning. The Nikkei 225 is up 0.5 percent while the Topix is trading 0.3 percent higher. South Korea's Kospi is the outperformer, trading with gains of 1 percent.

US Markets on Wall Street ended higher after November's Consumer Price Index increased 7.1 percent from last year, lower than economists projections of 7.3 percent. The Dow Jones gained 100 points while the S&P 500 added 0.7 percent. The tech-heavy Nasdaq ended 1 percent higher.

However, the indices ended significantly off the day's high as at one point, the Dow Jones was up as much as 700 points while the Nasdaq was up 4 percent. This happened after US President Joe Biden, while hailing the easing inflation numbers said that one should not take anything for granted.

What to expect on Dalal Street

Mahesh Patil of Aditya Birla Sun Life AMC expects the market to remain rangebound, adding that there have been outflows from the FII side into other Emerging Markets. He further added that although the outlook on India is good and consumption trends are improving, he would want to be cautious on the market.

Kunal Shah of LKP Securities believes that the momentum indicators of the Nifty Bank are in the strong buying zone which will aid the index's move towards levels of 45,000 in the short term. On the downside, he sees support at levels of 43,400, which in case of a breach, would drag the index to levels of 43,000.

Key levels to watch out for

For tomorrow's weekly options expiry, Nifty's 18,500 Call has shed 28.19 lakh shares in Open Interest while the 18,600 Call has shed 14.22 lakh shares. On the downside, the 18,600 Put added 18.73 lakh shares in Open Interest while the 18,550 Put and the 18,500 Put added 26.3 lakh and 16.89 lakh shares respectively.

Stocks like GNFC, Delta Corp and BHEL remain in the F&O Ban while Punjab National Bank will be out of the ban from today's session.

FII/DII activity

Trideep Bhattacharya of Edelweiss AMC expects the next three years to be robust for the Indian economy. He further added that government's mood will be pro-growth in an election year and that India Inc. will likely see earnings upgrades in the next six months.

Long build-up

Here are five stocks that saw an increase in open interest as well as price:

Short build-up (Decrease in price and increase in open interest)

Short Covering (Increase in price and decrease in open interest)

Long Unwinding (Decrease In Price & Open Interest)

Also Read: Paytm board approves buyback of equity shares at Rs 810 apiece

First Published:Dec 14, 2022 5:03 AM IST