Has the Indian Market Bottomed Out? Post Market Report – 28th January 2025 : Today (28-01-2025), the Sensex gained 535 points and closed at 75,901, while the Nifty gained 128 points and closed at 22,957. The Bank Nifty gained 802 points and closed at 48,867.
If you observe today’s market activity, the market opened with a slight gap-up and then started backing off. From 10 AM onwards, the market saw a strong uptrend until 2:30 PM. But from 2:30 PM, you would have observed a significant fall, not just in Nifty and Bank Nifty, but across all indices. The market fall in the second half could potentially be backed by FIIs (Foreign Institutional Investors). So, let’s try to track the FII data today, as there are strong expectations building in the market regarding a rate cut from the RBI. If we notice a big sell number from FIIs, it will be important to watch whether their selling continues.
- Midcap and Smallcap Indices Struggling
- As of this morning, midcap and smallcap indices have dropped over 3%. This severe pullback is reflected in mutual funds focused on these sectors, which have seen a loss of 15-16% in the month of January alone.
- It’s clear that January has been one of the toughest months, with continued selling pressure across smaller market caps.
- FII Selling Pressure
- The Foreign Institutional Investors (FII) have continued their selling spree. As of today, they’ve offloaded ₹5,000 crores, bringing the total selling in January to a staggering ₹80,000 crores.
- With three more trading sessions left in the month, the total could reach anywhere between ₹90,000 crores to ₹1 lakh crore, exacerbating downward pressure on the market.
- RBI Measures and Market Sentiment
- The measures introduced by the Reserve Bank of India (RBI) have failed to stem the tide of market decline. In fact, the Nifty today gave up most of its earlier gains, highlighting the continuing lack of investor confidence.
- The broader market sentiment remains weak, with FMCG, IT, and Pharmaceutical sectors also showing significant weakness.
- Sector-Specific Movement
- Financials are one of the few sectors that have seen a brief bounce, primarily driven by short covering. However, this move has not been enough to stabilize the broader market.
- The Crucial Question – Will the Finance Minister Respond?
- As the budget approaches, the burning question is whether the Finance Minister will take bold steps to address these challenges.
- This Budget 2025 must be a revolutionary one—something that goes beyond incremental changes. There is a need for a substantial positive stimulus that can stabilize the market and restore investor confidence.
- A strong, positive budget could not only reverse the market’s current trajectory but could also provide a much-needed boost to the Indian economy as a whole.
Absolutely, after the gap-up today, we saw the market gradually fall from the levels it had been expected to hold. 23,130 appears to be a significant resistance, and following the decline from this level, 23,060 also stands as another key resistance level.
Now, let’s focus on the support and resistance levels for Nifty and Bank Nifty.
Nifty:
- Key Support Levels:
- 23,000 – This can be considered a crucial support zone.
- 22,800 – If the market drops below this level, there is a higher likelihood of further weakness.
- Key Resistance Levels:
- 23,060 – Given the reversal at this level, it serves as an immediate resistance.
- 23,130 – If the market crosses this level, it could indicate more strength and potential upward movement.
Official Website
Check : Market Report and support and resistance levels
Tag : Has the Indian Market Bottomed Out? Post Market Report – 28th January 2025