Market views: Indian benchmark indices witnessed huge fluctuations during the day. At the end of trading, BSE benchmark Sensex closed at 76,215.49, down 304.89 points or 0.40 per cent. Earlier in the day, it had reached a low of 76,091.75 and a high of 76,985.95. Nifty index also slipped below 23,100 points and closed at 23,092.20 points, which shows a decline of 113.15 points or 0.49 percent. Due to market fluctuations it had reached a low of 23,050 intraday. However, in early trade, Nifty gained strongly on the back of sharp rise in IT stocks. But this lead could not be sustained. Profit booking soon gained momentum. There was heavy pressure in midcap and smallcap shares today.
Ajit Mishra of Religare Broking Says that this change in the index was in line with expectations. Nifty is expected to fall further towards 22,700-22,900 zone in the coming sessions. However, the biggest concern is the selling in the midcap and smallcap segments. This selling is unlikely to stop in the near future. The good thing is that select pockets across all sectors are showing signs of strength. These pockets may emerge as the best performing pockets during the next phase of recovery. For now, traders are advised to align their positions with the current trend and exit losing trades.
Shrikant Chauhan, Head Equity Research, Kotak Securities Says that the results of the third quarter of FY 2025 have been broadly in line with our expectations. However, management comments have not been encouraging. Due to which the sentiment has been negatively affected. FPI investment is expected to remain volatile. FPI inflows so far in January 2025 have been negative for all key emerging markets (except Brazil). India, Indonesia, Malaysia, Philippines, South Korea, Taiwan, Thailand and Vietnam respectively received US$ 6111 million, US$ 189 million, US$ 519 million, US$ 96 million, US$ 456 million, US$ 1261 million. Dollar, US $ 283 million and US $ 281 million have been withdrawn. However, during this period an investment of US$ 515 million has been made in Brazil.
Market outlook: Sensex-Nifty closed with a fall, know how their movement could be on January 27
Jatin Gedia, Technical Research Analyst, Mirae Asset Sharekhan It is said that Nifty witnessed volatile trading today. It saw selling pressure from the upper end of the broader range of 23350 – 23400 and closed in the red with a decline of 113 points. Nifty is trading in a wide range of 23000 – 23400 for the last four trading sessions. Divergence between daily and time frame momentum indicators could lead to further consolidation. The Bollinger Bands are also narrowing which is indicative of a rangebound action. So until Nifty breaks the support zone of 23050 – 23000, we can expect the range bound price action to continue. Weakness is visible in the broader market. Small cap index and midcap index closed down by 2.35 percent and 1.55 percent. If Nifty goes below 23000, the decline may increase towards 22670.
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