Domestic markets extended gains on Wednesday as recovery continued from Monday’s slump with broader mid and smallcap indices also rebounding in the session. Looking ahead, market participants will react to the US Fed meeting outcome in early Thursday trades, followed by the focus shifting to the January derivatives expiry.

Benchmark indices staged a relief rally on Tuesday from Monday’s sharp losses while broader Mid and Small cap indices extended their declines as they continued to underperform on valuation and earnings concerns.

"We maintain our sell on rise stance for the index and emphasize the importance of robust risk management, particularly in broader market segments like midcaps and small caps, while awaiting clearer signals," said Ajit Mishra – SVP, Research, Religare Broking.

Here's breaking down the pre-market actions:

STATE OF THE MARKETS

• Tech View: The negative chart pattern like lower tops and bottoms is still intact. A sustainable move above the next hurdles of around 23,350-23,400 levels could negate this bearish pattern and also open more upside ahead. Immediate support is placed at 23,000 levels, said Nagaraj Shetti of HDFC Securities.
• India VIX: India VIX, which is a measure of the fear in the markets, rose 2% to settle at 18.56 levels.

Stocks in F&O ban today
NIL
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.

FII/DII action
Foreign portfolio investors turned net sellers at Rs 2,586 crore on Wednesday. DIIs bought shares worth Rs 1,793 crore.

Rupee
The rupee pared its initial losses and settled for the day on a positive note, higher by 2 paise to close at 86.55 against the US dollar on Wednesday, supported by positive domestic markets.

FII data
The net short of FIIs reduced from Rs 2.36 lakh crore on Tuesday to Rs 2.24 lakh crore on Wednesday.

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