Indian markets are likely to remain red territory today. Foreign portfolio investors are expected to remain net sellers today. This is due to some anxiety stemming from the Federal Reserve’s interest rate hike decision that will come later tonight today. Shares of companies such as Maruti Suzuki will see movement. Their June quarter results will arrive today.

US markets saw a pullback yesterday ahead of big earnings and the Federal Reserve meeting today. Dow Jones lost 220 points. The Nasdaq closed lower for the third consecutive day, losing more than 216 points. Bond yields closed near 2.75%, the lowest in over 2 months. Oil prices rose slightly.

Asian markets opened quietly. With the Federal Reserve meeting tonight, all investors will be waiting for the direction of its action and talking to chart the way forward. The Japanese “Nikkei” is trading down 50 points, with most other Asian indices trading flat to slightly negative, although US futures were higher after strong results from Amazon, Texas Instruments and Microsoft.

The Nifty saw a day of losses for the 2nd day in a row as profit booking was seen across the board, mainly led by IT and banking stocks. This happened before the monthly expiration of derivatives contracts on Thursday and the Federal Reserve meet tonight. Nifty lost over 145 points. Bank Nifty lost 317 points. Mid-caps also experienced a downward trend. The Nifty Small cap index lost more than 1.45%.

Technical view: Nifty will likely find support around 16200 while 16850 will likely act as resistance on the upside. Bank Nifty is likely to find support around 36000 while 37000 is likely to act as resistance.

TRADING call (1-2 days): BUY Mphasis Futures August at 2180-2190. Stop loss: 2139. Target: 2230

Derivative call period (1 month): BUY Bharat Electronics August future at 266.5-267.5. Stop loss: 261.55. Target: 272.5