Stock market: Indian benchmark indices Sensex and Nifty closed with gains on January 22 after heavy fluctuations. The market today appeared to be recovering from its seven-month low on the strength of technology-driven stocks. However, broader market indices lagged significantly. Midcap and smallcap indices fell by more than 1 per cent. At the end of the trading session, Sensex closed at 76,404, up 566 points (0.75 percent). While Nifty increased by 130 points (0.57 percent) and closed at 23,155. Market breadth remained weak today. There was a rise in 1,110 shares today. A decline was seen in 2,677 cases. At the same time, there was no change in 107 shares. Analysts believe that if Nifty remains above 23,000 in the upcoming sessions, it may rise further.
How could the market move on January 23?
Vatsal Bhuva, Technical Analyst, LKP Securities Says Nifty took support near its previous session low of 22,980 on January 22 and formed a Hammer Tweezer Bottom candlestick on the daily chart. This indicates a possible recovery towards the level of 23,350 after Tuesday’s fall. However, the chances of continuation of the uptrend will be strong only if Nifty closes above 23,500. Its 21-day EMA is located at this level. Until this happens, it would be advisable to exercise caution. Short term traders can focus on 23,000-23,350 range. There is strong support for Nifty at 23,000. At the same time, on the upside, resistance for the index is visible in the zone of 23,350-23,400.
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Vinod Nair of Geojit Financial Services The benchmark indices rose amid increased volatility following better-than-expected results from a major private bank, says. The IT sector recovered from recent losses to gain ground, while mid- and small-cap stocks continued to underperform due to valuation concerns. Apart from banking and IT, most sectors recorded losses. In which the realty sector is the most affected. America is considering imposing lower tariffs on China. This news may give temporary relief to the market. But fundamental concerns remain. Weakness in dollar index may curb the weakness of rupee.
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