Tuesday, January 25, 2022

NIFTY OUTLOOK FOR EXPIRY 27 JAN 2022 & BUDGET 2022

Market made a smart recovery and ended higher in the highly volatile session on Wednesday 25 January 2022 supported by the auto, power and banking names except IT all other sectoral indices ended in the green with. At close, the Sensex was up 366 points at 57858, and the Nifty was up 129 points at 17278. Afternoon trade witnessed investor appetite in stocks of PSE and advance - decline ratio ended the day on a positive note. Investors bought into the 1000 point dip in the Sensex today morning as Banks & Autos led the recovery. As markets approach important near term events, the mood appeared circumspect although on the positive side the street is going into the Union Budget much lighter post the recent correction.  The markets have closed above 16950 which is a crucial medium-term support for the Nifty. If we need to bounce or make a V shape recovery, this is the place from where that can happen. 

Nifty witnessed a recovery during the Wednesday trade as it found support around 80% retracement of the previous rally from 16500 to 18300. A large green candle with a lower shadow has been formed on the daily chart which indicates buying at the lower levels of the day. Going forward, the resistance at 17400 may challenge the bulls; however, a decisive move above that level may take the Nifty higher towards 17700-17900. On the lower end support is visible at 16800/16500.

Resistance: 17350, 17425, 17575

Support: 17200, 17000, 16800

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