Market Overview:
Indian equity indices ended on a strong note, with the Nifty closing around 23,250 on January 30. The Sensex gained 226.85 points or 0.30 percent to close at 76,759.81, while the Nifty rose 86.40 points or 0.37 percent to settle at 23,249.50. The market exhibited high volatility on the monthly expiry day but managed to extend its winning streak for the third consecutive session.
After an initial surge, profit-taking in the mid-session led to fluctuations, before a late rebound helped the index close with decent gains. Sectoral performance was mixed, with realty, energy, and pharma sectors outperforming, while IT, media, and auto sectors lagged. The broader indices pared early gains and ended flat.
Market Technical Analysis:
Nifty is facing resistance around the 20-day EMA at 23,300, and a decisive close above this level is crucial for further recovery.
If Nifty fails to close above 23,300, renewed pressure may push the index toward the 23,000–22,700 zone.
On the hourly charts, the momentum indicator has triggered a negative crossover, signaling a potential sell-off.
Key support levels: 23,120 – 23,055
Key resistance levels: 23,320 – 23,350
The Index has broken out of its Falling Wedge formation, indicating a shift towards a positive momentum, though further confirmation is required.
Sectoral Performance:
Top Gainers: Realty, Energy, Pharma, PSU, FMCG, Oil & Gas, and Power sectors rose between 0.5-1 percent.
Top Laggards: IT, Media, Auto, and Consumer Durables sectors declined by 0.4-2 percent.
Stock Performance:
Major Gainers: Bharat Electronics, Hero MotoCorp, Bharti Airtel, Cipla, Power Grid Corp.
Major Losers: Tata Motors, Shriram Finance, Adani Enterprises, Bajaj Finserv, Adani Ports.
Market Trends and Outlook:
The market concluded on a positive note despite fluctuating between gains and losses throughout the session.
The fall in oil prices due to a rise in US inventories and easing of US 10-year yields after the US Fed’s hawkish stance may decelerate FII outflows.
The upcoming budget is being viewed as a potential inflection point, which could reverse the prevailing bearish trend if the policies restore growth and consumption.
The long-term outlook remains intact, with investors focusing on stocks and sectors exhibiting strong operational metrics and favorable valuations.
Conclusion:
The market exhibited resilience despite volatility on the expiry day. While the Nifty continues to face resistance at the 20-day EMA level, a breakout above 23,300 could fuel further gains. However, caution is advised as consolidation is expected ahead of the upcoming budget. Traders are recommended to focus on selective stock-picking and robust risk management strategies in the short term.
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