Daily Markets Wrap - Jan 25, 2022 - HDFC Securities

Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Nifty snapped a five day losing streak on Jan 25 even as the other Asian markets continued their decline. Nifty opened gap down and made its intra day low in the first 5 minutes of trade. It gradually rose through the day and closed near the highs of the day. At close Nifty was up 0.75% or 128.9 points at 17277.9. In the process, Nifty was the best performing index in the Asian region.

On a day when the volumes on the NSE were higher than recent average, Power, Bank, Auto and Telecom indices rose the most while IT and Consumer Durables fell the most. BSE Smallcap index rose 0.81% while Midcap index rose 1.03%.

Asian equity markets were hit on Tuesday as growing fears of a possible Russian invasion of Ukraine and Inflation-fighting measures from the Federal Reserve dampened investors' appetite for risk. European shares kicked off the session on the positive side but caution over the Fed and Ukraine risks was palpable, making for some choppy moves in the first hour of trading.

Nifty recovered smartly from the opening lows to end the day in the positive. It has recovered from an important support of around 16800. Advance decline ratio improved sharply to much above 1:1 after touching an 22 month low on the day before. After a trading holiday on Jan 26, Indian markets will react to the outcome of the US Fed meet due on 26th evening. While some initial weakness on Jan 27 cannot be ruled out, Nifty seems to have made a near term bottom on Jan 25. 17379 could be a resistance for Nifty while 16998 could be a support in the near term.

Source : Equity Bulls

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