Daily Markets Wrap - Jan 27, 2022 - HDFC Securities

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

Nifty ended lower on Jan 27 on the F&O monthly expiry day after a positive day on the previous trading session, though closing up from intra day lows. Nifty opened gap down in line with other Asian markets and continued falling to make an intra day low at 1225 Hrs. A recovery followed till 1445 Hrs post which the Nifty consolidated. At close the Nifty was down 0.73% or 125.3 points at 17152.7.

On a day when the volumes on the NSE were higher than recent averages, Bank and Auto indices gained the most while Realty, Consumer Durables, Telecom, IT and Healthcare indices fell the most. BSE Smallcap index ended lower by 0.82% while Midcap index closed 1.25% lower.

Stocks globally fell on Thursday after the Federal Reserve stuck to plans for an interest rate increase in March and more policy tightening to curb high inflation. In Asia, shares slumped to their lowest in nearly 15 months while European stocks were in recovery mode post a weak opening.

Cash volumes on a monthly expiry day touched an 8 expiry high suggesting heightened activity post the US Fed outcome and ahead of the Union Budget. Advance decline ratio was negative as broad market continued to witness profit taking post a volatile last week. Nifty has made a higher low compared to the previous day. In the near term 16998 could be a crucial support level, while 17278 could be a resistance. Whether a late Pre Budget rally will happen will depend on how the western markets behave today.

Source : Equity Bulls

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DailyMarketsWrap HDFCSecurities Nifty Sensex