Stock Market

Stock market today: Fag-end buying drives Sensex over 550 points, Nifty 50 above 23,150; IT stocks hog limelight

Stock Market Today: Indian markets bounced back sharply in Wednesday’s trading session, January 22, recovering from the sharp sell-off witnessed in the previous session, which had pushed the front-line indices to a 7-month low.

The Nifty 50 ended 130.75 points higher, or a 0.57% gain, to settle at 23,155 points, while the BSE Sensex finished the trade at 76,404 points, 0.75% higher than Tuesday’s close.

Today’s recovery on Dalal Street was primarily driven by heavyweights such as Infosys, HDFC Bank, and TCS, which saw strong buying momentum during the session. Additionally, pharma stocks supported the rally, helping the markets close higher.

While there was a recovery in large-cap stocks, mid- and small-cap stocks continued to face selling pressure for the second straight session on the back of weak earnings and valuation concerns. The Nifty Midcap 100 index has tumbled 1.34% to 53,113, and the Nifty Smallcap 100 index experienced even more selling pressure as it ended with a cut of 1.63% at the 17,172 level.

Meanwhile, the sell-off in EMS stocks extended into today’s trade, with Kaynes Technologies dropping another 11% after a 10% decline in Tuesday’s session. Other stocks in the EMS space, including Dixon Technologies, PG Electroplast, and Amber Enterprises India, have fallen by up to 7% in today’s session.

The once high-flying EMS stocks, which surged with no apparent ceiling, are now facing relentless selling pressure on Dalal Street. Investor sentiment toward the sector appears to have soured as Q3FY25 earnings failed to beat the expectations. 

Nifty 50: Key levels and trends

Vatsal Bhuva, Technical Analyst at LKP Securities said, “On Wednesday, Nifty took support near its previous session low of 22,980 and formed a hammer tweezer bottom candlestick on the daily chart, signaling potential recovery toward 23,350 levels after Tuesday’s decline.”

“However, sustained bullish momentum will only emerge if Nifty closes above 23,500, where the 21-day EMA is positioned. Until then, a cautious approach is advised. Short-term traders can focus on the 23,000–23,350 range, with 23,000 providing strong support and the 23,350–23,400 zone acting as a key resistance for the index,” he added. 

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.


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