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Sensex, Nifty snap 5-day bear hammering; Nifty resistance placed at 17400, all eyes on US Fed outcome

BSE Sensex and Nifty 50 ended over half a per cent higher on Tuesday, snapping a five-day bear hammering.

sensex, nifty, stock market
Nifty recovered smartly from the opening lows to end the day in the positive. It has recovered from an important support of around 16800. Image: Pixabay

BSE Sensex and Nifty 50 ended over half a per cent higher on Tuesday, snapping a five-day bear hammering. Stocks markets would remain closed on Wednesday, 26 January 2022, on account of Republic Day. BSE Sensex jumped 367 points or 0.64 per cent to end at 57,858, while NSE Nifty 50 index gained 128 points or 0.75 per cent to finish trade at 17278. Stocks of Axis Bank, State Bank of India (SBI), Maruti Suzuki, Bharti Airtel, Hindustan Unilever Ltd (HUL), L&T, among others, contributed the most to the indices’ gain. Broader markets outperformed the headline indices on Tuesday. S&P BSE Midcap index surged 1.03 per cent or 247 points to end at 24,245, and S&P BSE Smallcap index gained 0.8 per cent or 231 points to settle at 28,869.

Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments

The markets have closed above 16950 which is a crucial medium-term support for the Nifty. If we need to bounce or make a V shape recovery, this is the place from where that can happen. The next resistance is at 17400-17500. If we break 16950 on a closing basis, the markets can fall further to 16500-16550.

Rupak De, Senior Technical Analyst at LKP Securities

Nifty witnessed a recovery during the day as it found support around 80% retracement of the previous rally from 16400 to 18350. A large green candle with a lower shadow has been formed on the daily chart which indicates buying at the lower levels of the day. Going forward, the resistance at 17400 may challenge the bulls; however, a decisive move above that level may take the Nifty higher towards 17800. On the lower end support is visible at 17000/16800.

Mohit Nigam Head-PMS, Hem Securities

On the technical front 17,000 and 17,500 are immediate support and resistance in Nifty 50 respectively. For Bank Nifty 37,200 and 38,000 are immediate support and resistance respectively.

Vinod Nair, Head of Research at Geojit Financial Services

After a week-long consolidation, domestic indices took a breather supported by low-level buying. Western markets also supported staging recovery following correction in oil markets, and as uncertainties over Fed policy and geopolitical tensions eased. However, volatility is expected to linger as investors await the Fed’s final policy statement, providing clarity on the timeline of rate hikes. If the statement is hawkish as anticipated, we cannot ignore a bounce in the market.

Deepak Jasani, Head of Retail Research, HDFC Securities

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.

Ajit Mishra, VP – Research, Religare Broking

Markets will react to the Fed meeting outcome in early trade on Thursday and we expect volatility to remain high, thanks to the scheduled monthly expiry. Keeping in mind the scenario, we reiterate our cautious view and suggest preferring hedged positions.

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