What support level has the Nifty 50 found recently?

The Nifty 50 has found support in the 25,900-25,950 zone.

Which sectors are recommended for investment by Rahul Sharma?

Rahul Sharma recommends defence and PSU banks for potential outperformance.

What factors will contribute to market volatility in the coming days?

Market volatility is expected due to monthly derivatives expiry, earnings season, and the upcoming Union Budget.

Home / Business and Economy / Indian Stocks Rebound: Volatility Ahead

Indian Stocks Rebound: Volatility Ahead

22 Jan

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Summary

Nifty 50 finds support near 25,900-25,950 levels.
FII cash selling is not aggressive despite market correction.
Defence and PSU banks are preferred sectors for outperformance.

Indian equity markets are experiencing a recovery with a return of buying interest, though heightened volatility is expected in the near term. The Nifty 50 has recently found support around the 25,900-25,950 zone after a period of sharp selling.

Despite the broader market structure remaining bearish, with retail investors often using rallies as exit points, a key encouraging factor is the absence of aggressive Foreign Institutional Investor (FII) cash selling. FIIs have shown bullishness in Nifty futures, suggesting a favorable risk-reward ratio for long positions.

Technical analysis indicates that current volatility could be viewed as a buying opportunity, with potential for the Nifty to move back towards 25,500 and 25,800. However, upcoming sessions are likely to remain choppy due to multiple triggers, including monthly derivatives expiry, the ongoing earnings season, and the forthcoming Union Budget.