Brokers` outlook: Fed Meet to impact tomorrow`s trading

The Sensex ended the day with a gain of 113.49 points, or 0.80% at 14,220.07, after touching an intraday high of 14,248.65 and a low of 13,731.54. The broad-based NSE Nifty climbed 61.55 points, or 1.47% at 4,252.65 after hitting a high of 4,264.55 and a low of 4,093.20.

P.K. Agarwal, president–research, Bonanza Portfolio said, ``Following weak global cues and RBI`s announcement late yesterday, hiking of repo rate by 50 basis points to 8.50% with immediate effect and cash reserve ration (CRR) by 50 basis points to 8.75% in two stages, Indian markets opened gap down.

Nifty opened at 4,189. Breaking crucial 4,100 levels, it touched a low of 4,093 but bounced sharply from there. It went into positive territory during noon.

In the last hour of trade, Bulls took control. Nifty touched a high of 4,264 and closed near the high at 4,252.

Strong recovery was led by Reliance Communication, Unitech, Tata Steel, Siemens. Telecom was the strongest among sectors. Whereas ITC, HDFC, Power Grid, Wipro were heavyweight losers. FMCG sector was weak.

Outcome of today`s Fed Meet to impact tomorrow`s trading at least initially.

On upside 4300/4350 is the immediate resistance level. Support can come at 4200 level.``