At 9.16 am, the BSE Sensex was trading 89.19 points or 0.15 per cent lower at 58,751.60. Nifty50 was trading at 17,490.60, down 40.25 points or 0.23 per cent.
V K Vijayakumar, Chief Investment Strategist at
said that the near-term texture of the market has turned weak and the buy on dips strategy is unlikely to work in the present risk-off global environment. FIIs turning sellers is a short-term negative, he said.
“The market is likely to take a decisive trend only after the Fed policy announcement on 21st September. The market expects the Fed to raise rates by 75bp and reiterate its hawkish stance. But since the market is going into the event with light positions and no positive expectations any positive data or comment may act as a trigger for a relief rally after the Fed announcement,” Vijaykumar added.
Bank Nifty will continue to be the pillar of support for Nifty and near-term sentiments are negative for IT despite reasonable valuations, he said, adidng that the situation is very fluid and therefore it would be better for investors to wait and watch till the Fed meeting is over.