Markets remained under pressure for the third successive session on Thursday 20 January 2022 and lost nearly 1%. The tone was negative from the beginning, tracking weak global cues which further deteriorated as the day progressed. However, a rebound in the final hour trimmed some losses. Consequently, Nifty settled around 17757 levels; down by 1.01%. Nifty broke its momentum support levels of 17900 and tested the 17700 levels. For the short term, selling pressure can push the index towards 17350-17450 mark. The medium term outlook remains intact as we don’t see any signs of trend reversal.
Markets
are currently facing global headwinds and there’s no relief from the domestic
front as well. However, we feel it’s a healthy correction so far and expect
Nifty to hold the 17625 zone. For traders, the major challenge is to tackle
the volatility amid the earnings season. We feel it’s prudent to limit
positions and prefer a hedged approach until markets resume the uptrend.
Investors, on the other hand, shouldn’t worry much about the recent fall and
maintain their focus on accumulating quality stocks on dips. The
Nifty witnessed continued selling pressure for the third consecutive session.
As a result, it has swiftly fallen towards its key DMAs as well as near the 20
WMA. These moving averages are placed near 17650-17550. The 38.2%
retracement of the entire Dec – Jan rally is also present near 17500. Thus the
Nifty has now reached a key short term support zone of 17700-17600. The
index can form a base over here & attempt a bounce. On the higher side, the
level of 18000 will now act as a near term barrier. The hourly moving averages
have also come down to around 18000. So going ahead, 17600-18000 is expected to
be the near term range for the Nifty. On the higher side expect
19000-19500 to be conquered going ahead. Value is seen in the energy and NBFC
space while other high beta sectors are expected to remain volatile.
Resistance: 18150, 18225, 18300
Support: 17925,
17850, 17800
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