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Nifty registers sharp recovery after Tuesday’s sharp fall

From early morning low of 21,137, Nifty registered a sharp recovery of more than 340 points and finally ended the day with gains of 215 points to close at 21,465.

Mumbai, Jan 24,2024:  From early morning low of 21,137, Nifty registered a sharp recovery of more than 340 points and finally ended the day with gains of 215 points to close at 21,465.

Though NSE Cash market volumes were lower as compared to Tuesday, it remained higher as compared to recent averages, said Nandish Shah, Deputy Vice President, Retail Research, HDFC Securities.

After Tuesday’s sharp fall, Nifty Midcap 100 and Smallcap 100 Indices recouped some of the losses, gaining by 1.80 per cent and 1.70 per cent, respectively.

Advancing shares outnumbered the declining shares as advance decline ratio stood at 1.83 on BSE. All the sectoral Indices ended in the green except Nifty Private Banks. Among them, Nifty Media, Nifty Metal and Nifty Oil/Gas rose the most, Shah said.

Meanwhile, China’s central bank announced that the reserve requirement ratio for commercial banks will be reduced by 50 basis points from February 5 to boost the economic growth.

The move is expected to inject 1 trillion yuan ($140 billion) worth of liquidity into the market. Metal stocks gained as uptick in Chinese economy can provide strong boost to demand for metals with China being the largest consumer of commodities globally, he said.

Near term resistance for Nifty is seen in the zone of 21,700-21,750, which should be utilized to lighten trading long commitments, he said.

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