Among sectors, all the major sectoral indices were traded in the red, but the Realty index lost the most, shed over 4 percent.
Shrikant Chouhan,
Head Equity Research,
Kotak Securities
Mumbai, January 21, 2025: Today, the benchmark indices corrected sharply. The Nifty ends 320 points lower, while the Sensex fell by 1235 points. Among sectors, all the major sectoral indices were traded in the red, but the Realty index lost the most, shed over 4 percent.
Technically, after a gap-up open, the market consistently faced selling pressure at higher levels. This led to the formation of a long bearish candle on the daily charts, and the index closed below the 23,100/76000-support zone, which is largely negative. We are of the view that, as long as the market trades below 23, 100/76000, the weak sentiment is likely to continue.
On the downside, the market could slip as low as 22,900/75500. Further weakness is likely to continue, which could drag the market till 22850/75300. However, above 23100/76000, the market could bounce back, moving towards 23,250-23,300/76400-76500. The current market texture is volatile, and thus level-based trading would be the ideal strategy for day traders.
According to Satish Chandra Aluri, Lemonn Markets Desk, Benchmark indices ended sharply lower after a highly volatile session on Tuesday on renewed selling pressure across the board with markets extending their downtrend. Broader Mid and Small cap indices posted sharp losses as investors digested earnings announcements. All major sectors ended in red with realty and consumer durables worst hit segments.
Markets are experiencing significant volatility as they digest a deluge of earnings announcements while also unsettled by the uncertainty around Trump administration plans regarding trade tariffs and upcoming budget. For now, investors continued to remain cautious as they adjust their portfolios to reflect the slowing growth and weak earnings while foreign selling pressure continues.
Technically, Nifty 50 extended its fall in the downward channel with 23000 acting as crucial support with next support around 22800 levels. Bank Nifty reversed previous session gains to close below the 49000 level with 48500 acting as next immediate support.
