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Below Quote Daily Market Analysis 27 January 2023 By Mr. Ajit Mishra, VP - Research, Religare Broking Ltd

Markets finally ended a month-long consolidation phase with a breakdown and lost over 1.5%. Participants were in a cautious mood from the beginning and a sharp sell-off in the banking, IT and energy majors further soured the sentiment as the day progressed. Consequently, Nifty slipped below the major support zone of long term moving average i.e. 200 EMA at 17550 intraday and finally settled at 17,604.35 levels. The broader indices too witnessed a severe fall and shed in the range of 1-1.5%.

The carnage in the Adani group stocks cascaded across the board and the banking sector faced the maximum pressure. Participants were already facing challenges due to mixed global cues and caution ahead of the Union Budget and this breakdown has further added to worries. We are now eyeing the 17,250-17,400 zone as the next support while any rebound toward the 17,750 level would attract selling pressure. We thus reiterate our view to prefer hedged positions and aligning trades according to the trend. 

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