Thursday, January 27, 2022

NIFTY OUTLOOK FOR FEB SERIES 28 JAN 2022 & BUDGET SESSION

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After a day of hiatus, benchmark indices were back in the red on Thursday as the US Federal Reserve spooked markets by announcing a timeline to raise interest rates. But some buying in the afternoon gave hope to bulls. Value stocks made a comeback with the PSU Bank index rallying over 5%. The market was well supported by auto stocks to stage a smart recovery. At the same time, IT and pharma stocks witnessed profit-taking. The Sensex declined 581 points to close at 57276. Consequently, Nifty closed at 17110; down by 1%. Excessive volatility on the global front is keeping our markets also on the edge. With the US FOMC meet behind us, we expect some stability now. However, the prevailing earnings season and upcoming Union budget 1 February 2022 would keep the participants enthusiastic. The recent buoyancy in the banking space is certainly encouraging but the other sectors should also support for any meaningful recovery. We feel it’s prudent to stay light and let the markets stabilise. Consequently, the Nifty held on to the psychological mark of 17000 on a closing basis for yet another session.  The overall structure shows that the index is preparing for a short term bounce towards 17300-17500. On the flip side, 16900 will continue to act as a near term support on a closing basis with major support at 16800.

Resistance: 17350, 17425, 17575

Support: 17200, 17000, 16800

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