Stock Markets Today, Wednesday, January 22, 2025: India stock markets suffered deep cuts on Tuesday, in a highly volatile session, as foreign investors continued to offload domestic equities.
The benchmark BSE Sensex index crashed 1,235.08 points or 1.60 per cent to settle at 75,838.36, -while the NSE Nifty50 ended at 23,024.65, nursing a loss of 320.10 points or 1.37 per cent.
Foreign institutional investors (FIIs) and foreign portfolio investors (FPIs) net sold stocks worth Rs 5,920.28 crore in the secondary markets yesterday, taking the month-to-date selling above Rs 50,000-crore mark.
Domestic institutional investors (DIIs), on the other hand, tried to counter the sell-off with Rs 3,500.32-crore buying.
How to trade Sensex today? What are the key levels to watch on Nifty today?
Devarsh Vakil, Head - Prime Research, HDFC Securities:
The Nifty index has declined over 13 per cent from its all-time high of 26,277, closing at its lowest point in the current downtrend. On the daily chart, the Nifty formed a bearish engulfing candlestick pattern, encompassing the movement of the previous six trading sessions. This technical formation suggests the primary downtrend may continue, with the next support level at 22,800 and resistance at 23,200.
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Om Mehra, Technical Analyst, SAMCO Securities:
The Nifty formed a bearish engulfing candlestick pattern, with the day's body engulfing the candles of the previous six sessions, signaling an intensified bearish outlook.
The broader structure of ‘lower highs and lower lows’ remains intact, indicating the continuation of the downtrend. Nifty also slipped below its 9-day EMA, suggesting weakening short-term momentum.
The daily RSI tilted further downward and is hovering near the 35 level, reflecting diminishing strength. The support is positioned at 22,800 and the primary trend remains decisively bearish.
At this juncture, bottom fishing should be avoided as the market remains vulnerable. It is prudent to wait for clear signs of stabilisation or reversal.
Shrikant Chouhan, Head Equity Research, Kotak Securities:
The benchmark indices formed long bearish candles on the daily charts, and closed below the support zone of 23,100 on the Nifty and 76,000 on the Sensex, which is largely negative.
On the downside, the market could slip as low as 22,900/75,500. Further weakness is likely to continue, which could drag the market till 22,850/75,300. However, above 23,100/76,000, the market could bounce back, moving towards 23,250-23,300/76,400-76,500.
The current market texture is volatile, and thus level-based trading would be the ideal strategy for day traders.
Stock Market Prediction Today, Jan 22:
GIFT Nifty signals a stable open for India markets today. At 6:50 AM, the index was up 47 points at 23,150 levels.
There are no key events lined up for Wednesday. Investors will track individual stocks for their quarterly results’ performance, and eye Donald Trump’s policies and announcements after his inauguration as the 47th President of the United States.
Q3 Results Today, Jan 22, 2025:
A total of 50 companies are set to report their December quarter (Q3) results today. These include Coforge, Go Digit, HDFC Bank, Hindustan Unilever, Hudco, Persistent Systems, Pidilite Industries, Polycab, Tata Communications, Tips Music, and Zensar Technologies.
Brokerages tracked by Business Standard estimate HUL's adjusted profit after tax (PAT) at Rs 2,577.97 crore, on an average, implying a rise of 1.89 per cent year-on-year (Y-o-Y), but down 0.84 per cent quarter-on-quarter (Q-o-Q). The company's revenue, on the other hand, is anticipated at Rs 15,688.22 crore, a rise of 0.75 per cent Y-o-Y but a decline of 1.5 per cent Q-o-Q. READ PREVIEW HERE
As for HDFC Bank, analysts estimate HDFC Bank’s Q3 profit growth to come in the range of -3 per cent to 2 per cent year-on-year (Y-o-Y). On a quarter-on-quarter (Q-o-Q) basis, the profit may fall up to 6 per cent. READ PREVIEW HERE
IPO Listings Today, IPOs Opening Today:
In the mainboard category, Denta Water and Infra Solution IPO is set to open today with a price band of Rs 279 to Rs 294. Denta Water IPO aims to raise Rs 220.5 crore, and will close for subscription on January 24, 2025.
In the SME category, Rexpro Enterprises IPO will open for subscription today, while CapitalNumbers Infotech IPO will close for subscription today.
Moreover, EMA Partners IPO, which closed for bidding yesterday, will see the share allotment being finalised.
That apart, Rikhav Securities shares and Kabra Jewels shares will list on BSE SME and NSE SME platforms.
On the regulatory front, the Securities and Exchange Board of India (Sebi) is working on a platform that will allow trading in shares issued during initial public offerings (IPOs) before they are formally listed. The move aims to curb grey market trading and ensure better price discovery. READ MORE
Global Markets
Asia Pacific markets were mostly higher on Wednesday, tracking positive cues from Wall Street.
Japan’s Nikkei was holding gains of 1.3 per cent, South Korea’s Kospi 0.49 per cent, and Australia’s ASX200 0.47 per cent.
In the US, the Dow Jones Industrial Average added 1.24 per cent, the S&P 500 gained 0.88 per cent, and the Nasdaq Composite rose 0.64 per cent.