Nifty Outlook: The Indian stock market remained under pressure for most of the time on Tuesday, but a strong recovery was seen in the last hour of the day. Despite continuous selling, Nifty 50 managed to stay above the important level of 25,700.
Now let us understand from the experts how the movement of Nifty will be on Wednesday, January 14 and which levels will be important. But, first let us know what special happened in the market on Tuesday.
full day journey of nifty
Nifty started the day with a gain of 107 points. In early trade it reached near 25,891, where it met resistance at the 50-day exponential moving average. After this the selling increased and the index started slipping. Ultimately Nifty closed at 25,732 with a fall of 57 points.
The selling during the day was so intense that Nifty went to an intraday low of 25,603. However, a surge of over 150 points in the last one hour negated the losses to a great extent.
Which stocks are strong and which are under pressure?
Among Nifty shares, ONGC, Eternal and ICICI Bank supported the market with gains. On the other hand, selling dominated in Trent, Larsen & Toubro and Dr Reddy’s and these shares closed with losses.
There was clear division in the market at the sectoral level. Strength was seen in PSU banks, media and IT sectors. Whereas consumer durables, realty and pharma stocks remained under pressure due to profit booking.
Nifty Midcap 100 index closed with a marginal decline of 0.20 per cent. In contrast, the Smallcap 100 index ignored the market weakness and registered a gain of 0.6 percent.
Now on which factors will the market depend?
Now investors will keep their eyes on the upcoming quarterly results. Companies like Infosys, Groww Venture, HDB Financial Services, HDFC AMC, ICICI Prudential AMC, Indian Overseas Bank, Waaree Renewables Technologies, Union Bank of India and Anand Rathi Share and Stock Brokers are going to present their results.
The allotment of Bharat Coking Coal Ltd IPO worth ₹1,071 crore is going to happen on Wednesday. It is a subsidiary company of Coal India and there is already a lot of discussion in the market regarding its IPO.
Expert opinion on Nifty
HDFC Securities’ Technical Analyst Nagaraj Shetty believes that there is scope for further rise in Nifty from the current levels. According to him, Nifty may cross the resistance zone of 25,900-26,000 in the coming sessions. He has stated strong support around 25,600.
Ajit Mishra of Religare Broking said that there was volatility in the market on the day of weekly expiry and Nifty closed with a slight fall. According to him, the market movement currently shows the tussle between two forces. On the one hand, reactions related to quarterly results and on the other hand, global uncertainty.
Bharat Coking Coal IPO: Confusion increased due to stock market holiday, will the listing of January 16 be postponed now?
Religare Broking has currently maintained a cautious stance on Nifty. The brokerage recommends adopting a ‘sell on bounce’ strategy until Nifty strongly regains the 26,000 level. If Nifty slips below the 100-day EMA near 25,600, the fall could be deeper till 25,400.
According to Nandish Shah of HDFC Securities, for Nifty to regain momentum, it is necessary to cross the 50-day EMA around 25,900. At the same time, the recent swing low of 25,473 can act as an important support in the near term.
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