US Federal Reserve Holds the Whip for Global Markets

The Nifty 50 index rose by nearly 550 points from its low on February 28 to touch the level of 17,800. However, it faced resistance at the 61.8 per cent retracement level after the rally. During this time, US Federal Reserve Chair Jerome Powell stated that interest rates are likely to be higher than previously anticipated, pointing towards a 50 bps rate hike in March to combat sticky inflation. The US Dollar index also jumped to an eight-week high of 105.50, resulting in a knee-jerk reaction in the domestic market. But the bulls regrouped and gained 150 points from the day's low. Then, during the next trading session, Nifty lost its gains and ended below its previous session low and the 20 DMA.