Dear
Trader…
The markets experienced a volatile session on Tuesday,
ultimately closing with a decline of nearly 1.5%. Despite an initial uptick,
the benchmark index fluctuated significantly throughout the day before settling
near its intraday low at 23,103.20. Selling pressure was broad-based, with
sectors like realty, energy, and auto leading the losses. The broader indices
also came under significant pressure, each shedding over 2%.
This decline signals a resumption of the negative trend
following a brief consolidation phase, with the Nifty index likely to move
towards the 22,700 level. Persistent selling by FIIs and a lackluster start to
the earnings season are key factors dampening market sentiment. Additionally,
the recent uptick in the volatility index, India VIX, is contributing to the
prevailing cautious outlook. Given these conditions, we recommend adhering to a
“sell on rise” strategy in the Nifty index while emphasizing robust
risk management practices.
Nifty futures opened at 23424.95 points against the previous
close of 23400.20 and opened at a low of 23051.65 points. Nifty Future closed
with an average movement of 409.00 points and a decline of around 297.00 points
and 23103.20 points…!!
On the NSE, the midcap 100 index will decline 2.31% and smallcap
100 index is closing
decline 2.28%. Speaking of various sectoral
indices, Realty, Consumer Durables, Financial Services, Auto and Bank stocks
saw heavy selling on the NSE, while all other sectoral indices also closed
lower.
At the start
of intra-day trading, February gold opened at Rs.78942, fell from a high of Rs.79037
points to a low of Rs.78797 with a rise of 416 points, a trend of around Rs.78960
and March Silver opened at Rs.91764, fell from a high of Rs.92361 points to a
low of Rs.91432 with a rise of 158 points, a trend of around Rs.91600.
Meanwhile, Investor
sentiment remained weak amid lacklustre Q3 earnings and sustained selling by
foreign institutional investors (FIIs), who have sold equities worth Rs 48,023
crore (as of January 20).
The rupee
initially traded strong at the opening, gaining 0.20 paise to reach 86.29 on
the back of a weaker dollar overnight. The dollar softened following US
President Trump’s inauguration ceremony, which introduced tariffs on imports
along the Mexican and Canadian borders, creating short-term market uncertainty.
Technically, the important key resistances are placed in Nifty future are at 23173 levels, which could offer for the market on the higher side. Sustainability above this zone would signal opens the door for a directional up move with immediate resistances seen at 23202 – 23272 levels. Immediate support is placed at 23088 – 23008 levels.
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