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Below the Quote on Pre-Market Comment by Hardik Matalia, Derivative Analyst, Choice Broking

The Indian equity markets ended the day on a subdued note on January 27, 2024, as global uncertainties and weak domestic cues weighed on investor sentiment. The benchmark Nifty index closed below the crucial 23,000 level, reflecting the bearish undertone observed throughout the trading session.

The Nifty concluded the day at 22,920, marking a decline of 163 points. The index struggled to hold its key support levels, with selling pressure evident across major sectors, particularly IT and financials. The inverted hammer candlestick pattern observed earlier played out, reinforcing the cautious sentiment among market participants. Immediate support now lies at 22,800, while resistance remains firm at 23,000. 

The Bank Nifty also witnessed a lackluster session, ending at 48,300, down by 200 points. The index's consolidation below the 48,500 mark suggested persistent weakness, with no clear signs of a reversal. Key support levels for Bank Nifty are seen at 47,800 and 47,400, while resistance remains at 48,700. Investors refrained from aggressive buying, awaiting confirmation of trend direction. 

Foreign Institutional Investors (FIIs) continued their selling spree, adding pressure to the markets. FIIs offloaded equities worth ?2,658 crore, reflecting their cautious approach amid global uncertainties. Meanwhile, Domestic Institutional Investors (DIIs) provided some relief, with net purchases of ?2,450 crore, though it wasn’t enough to offset the broader weakness. 

Overall, the markets remained under pressure throughout the session, with investors exercising caution ahead of key global and domestic events. Traders are advised to closely monitor price action at critical support and resistance levels before making any significant moves in the coming days.

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