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

The benchmark Sensex and Nifty indices are expected to open flat on Jan 31, following GIFT Nifty trends indicating a gain of 08 points for the broader index.

After a flat opening, Nifty can find support at 23,200 followed by 23,050 and 22,950. On the higher side, 23,300 can be an immediate resistance, followed by 23,400 and 23,500.

The charts of Bank Nifty indicate that it may get support at 49,200 followed by 49,000 and 48,700. If the index advances further, 49,500 would be the initial key resistance, followed by 49,700 and 50,000.

The Foreign institutional investors (FIIs) remained net sellers on January 30, as they sold equities worth Rs 4,582.95 crore, while domestic institutional investors purchased equities worth Rs 2,165.89 crore on the same day.

INDIAVIX was negative Yesterday down by 6.71% and is currently trading at 17.3900.

Yesterday, the Indian markets experienced high volatility, with strong buying from lower levels. However, the Nifty index failed to sustain higher levels but still managed to end the session on a strong positive note near the 23,250 mark. Meanwhile, global markets also traded positively, while Foreign Institutional Investors (FIIs) remained net sellers, continuing concerns about the sustainability of the ongoing rally. On the downside, 23,000 serves as a crucial support level, and a breach below this mark could trigger extended selling toward 22,800. On the upside, immediate resistance is observed at 23,300, followed by a critical hurdle near 23,500. A sustained close above these resistance levels is essential to negate the prevailing bearish sentiment and confirm a bullish reversal. Given the prevailing volatility, traders are advised to exercise caution, implement strict stop-loss strategies, and avoid carrying positions overnight while maintaining strict stop-losses, as high volatility is expected ahead of the Union Budget 2025.

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