Trade setup for Dec 16: Can bulls rescue Nifty50? Check out key market cues ahead of Thursday's session

Indian equity benchmarks extended losses to the fourth session in a row on Wednesday, ahead of the outcome of the Fed's policy review amid concerns about the Omicron variant of COVID-19.

The Nifty50 has lost almost 300 points in four days. The Bank Nifty failed to hold on to the green to end down 0.3 percent.
What do the charts suggest for Dalal Street now?
The Nifty50 has formed a reasonable negative candle on the daily chart, a sign of more weakness or consolidation in the next session, according to Nagaraj Shetti, Technical Research Analyst at HDFC Securities.
Technically, a confirmation is required for a reversal in the current downtrend, Nagaraj said. "Going by long-term charts, a larger degree of lower tops and bottoms can be observed ahead," he added.
Time to focus on quality
Major support for the 50-scrip index exists at 17,050-16,900 levels, said Rahul Sharma, Co-Founder of Equity99. He believes the market to bounce back towards 17,500 in the coming days. "Every correction will work as an opportunity to invest in fundamentally strong companies," he added.
Here are key things to know about the market before Thursday's session:
SGX Nifty
At 10:24 am on Thursday, Singapore Exchange (SGX) Nifty futures -- an early indicator of the Nifty50 index -- were up 92.5 points or 0.5 percent at 17,344, suggesting a positive opening ahead on Dalal Street.
Global markets
Equities in other Asian markets tracked Wall Street higher after the Fed said it would end its pandemic-era bond buys in March and make way for three interest rate hikes next year to tackle inflation. "The economy no longer needs increasing amounts of policy support," Fed Chair Jerome Powell said.
MSCI's broadest index of Asia-Pacific shares was up 0.3 percent in early hours. Japan's Nikkei 225 was up 1.6 percent and China's Shanghai Composite 0.3 percent, but Hong Kong's Hang Seng down 0.6 percent.
S&P 500 futures were up 0.1 percent in Asia. On Wednesday, the three main Wall Street indices surged 1.1-2.2 percent after the Fed announcements.
What to expect on Dalal Street
HDFC Securities' Shetti fears more of decisive weakness in the Nifty50 could open levels of 17,000-16,900 in the short term. "Any upside bounce from here could find strong resistance around 17,350-17,400 levels," he said.

Source - CNBC TV