India's currency, debt and equity markets will remain closed on Tuesday on account of Republic Day. Trading at the BSE Sensex, NSE Nifty will resume tomorrow on January 27.
On January 25, equity indices closed 1% lower in a volatile trading session amid profit booking in global markets. Falling for the third straight session, Sensex ended 530 points lower at 48,347 and Nifty lost 133 points to 14,238. Overall, investors lost Rs 2.08 lakh crore w from the market in a single session.
Traders said volatility is expected ahead of Derivatives expiry day and market trend will be dictated by the expectations over the Union Budget scheduled February 1.
The currency benchmark Indian rupee, rose for the fifth straight day to end 3 paise higher at 72.94 per dollar, despite heavy selling in the domestic equity market.
On the domestic data front, the Indian economy contracted by 7.5 percent in the July-September quarter of this fiscal amid the COVID-19 crisis, official data showed.
Meanwhile, global stocks continued correcting in today's session, with some weakness registered in both Asian and European counterparts, as investors locked profits after a recent rally that was driven by hopes of a massive US economic stimulus plan by incoming President Joe Biden. US markets closed mixed as investors factored in prospects of new US President's stimulus package and focused on FOMC meeting scheduled this week.
Traders said investors watched developments around Covid-19 vaccine, against the mutating coronavirus which has produced a number of potentially more infectious variants.
Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking)," At yesterday's close, Nifty was placed at crucial swing low of 14222, which remained unbroken on a closing basis. However, the way charts are shaped up, the possibility of sliding below this level is quite high to test 14100 -14000 levels. On the flipside, 14360-14500 are likely to act as immediate hurdles.
We continue with our cautious stance on the market and as mentioned in the previous commentary, traders are advised to stay light on positions. Generally, market does not give any major trend reversal ahead of the mega event; but this time, it looks like we are going to witness yet another unprecedented behaviour of the market. Next couple of days would be quite crucial and would be interesting to see whether markets correct further or it shows some resilience to protect its crucial supports."
Ashis Biswas, Head of Research at CapitalVia Global Research Limited said," The market witnessed yet another day where bears were able to take the charge completely despite the positive opening. Market might continue to witness the correction this week. 14170-14200 will be an important support zone, a decisive break-down below this level could lead to the next support zone of 13970-14000. The momentum indicators like RSI, MACD indicating the corrections might continue."