Daily Market Outlook by FundsIndia Morninger
Nifty Technical Outlook
On Thursday, Nifty opened gap-down, slipped below 25,900, and faced selling pressure through the session. It tested 25,750 intraday but closed above 25,800, snapping a four-day winning streak. The IT index dragged the Nifty, dropping 5.5% amid AI concerns, with Tech Mahindra falling nearly 6%. Financials offered support, but market breadth was negative. Retail inflation eased to 2.75% in January. TCS market cap fell below ?10 lakh crore for the first time since December 2020. Except Defence, Consumer Durables, Financials and Metals, all sectoral indices closed in the red. The Nifty dropped 146.65 points closing at 25,807.20. The Nifty formed a bearish candlestick pattern on the daily chart, but we expect the buying interest to emerge at lower levels. The volatility index IndiaVIX has closed below 12 and we expect the volatility to ease in the short term. The Nifty short-term trend remains bullish and the trend will turn bearish only below 25,600 levels. The 9-day simple moving average is placed at 25,721.
