Closing Bell: Nifty, Sensex stage bounce back to end in green ahead of stock market holiday on January 26

The Indian markets bounced back after Nifty and the Sensex witnessed corrected of around 1 per cent in the morning trade as concerns over the US Federal Reserve's plans to raise interest rates, as well as tensions in Ukraine, weighed on Asian markets.The benchmark indices recovered to end in the green on Tuesday ahead of holiday on Wednesday on the occasion of Republic Day.  

The broader Nifty ended above 17, 200 as the 50-share index closed at 17,277.95 after gaining 129 points or 0.75%.  The Sensex too gained 366.64 points or 0.64% to settle at 57,858.15  on Wednesday.  

Talking about the recovery, Amit Jain, CEO & CO-Founder of Ashika Wealth Advisors, said "As we all know that stock markets are always volatile either before Budget or after Budget. If you observe the data for the last 10 years, seven years markets had fallen before the Budget and thrice after the budget, Hence, it is not a great worry for the broader market. In the present scenario, markets are more volatile due to upcoming Fed meet on 26th January & inflation risk in Global Economy which is aggravating the downside risk in this Pre-Budget session." 

Meanwhile, Maruti gained the most despite the auto major reported a 47.82 per cent decline in consolidated net profit to Rs 1,041.8 crore for the December 2021 quarter, mainly due to the ongoing semiconductor shortage and increase in commodity prices. 

''Investors bought into the 1000 point dip in the Sensex today morning as  Banks & Autos led the recovery. As markets approach important near term events, the mood appeared circumspect although on the positive side the street is going into the Union Budget much lighter post the recent correction. Afternoon Trade witnessed investor appetite in stocks of PSE and advance - decline ratio ended the day on a positive note," said S Ranganathan, Head of Research at LKP securities. 
 

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Besides, Axis Bank, Maruti, State Bank of India, IndusInd Bank, UPL, Bharti Airtel, PowerGrid, NTPC and Hindustan Unilever were among top gainers on the two indices.  

Wipro, Titan, Bajaj FinServ Infosys, Tech Mahindra, Ultra Tech Cement, Titan, HDFC Limited and Asian Paints dragged the market the most.  

All broader market indices turned green on Tuesday, while except IT and consumer durables, other sectoral indices too ended positive on Tuesday.   

"Nifty witnessed a recovery during the day as it found support around 80% retracement of the previous rally from 16,400 to 18,350. A large green candle with a lower shadow has been formed on the daily chart which indicates buying at the lower levels of the day. Going forward, the resistance at 17400 may challenge the bulls; however, a decisive move above that level may take the Nifty higher towards 17800. On the lower end support is visible at 17000/16800," said Rupak De, Senior Technical Analyst at LKP Securities