SGX Nifty Jumps 80 Pts as Buy-On-Dip Investors Take Charge!

  • Stock Market Analysis

After a 0.44% cut to 18,027.65 in the Nifty 50 index on Friday, the SGX Nifty turned the course after India’s trading session got over and jumped 83 points or 0.46% to 18,127.5. The rally materialized on the back of positive global cues with the Dow Jones surging 1% to 33,375.49 on Friday, after three straight sessions of fall. 

On 18 January 2023, the Nifty 50 index surged past its immediate preceding peak for the first time after the correction started from the top of 18,887.6 and since then the trend has changed from a downtrend to an uptrend. The current buy-on-dip scenario seems to be playing out as after a noticeable plunge on Friday, the market would again likely resume up move on Monday, as indicated by the SGX Nifty.  

The ongoing volatility regime is also supporting the market’s uptrend. Despite taking a hit in the last session, the India VIX also closed in the red, dropping 1.22% to 13.79 which is depicting that the market participants are not fearful of the fall. Generally, the VIX shoots up when the market plunges, but its 5 straight sessions of fall are clearly reflecting the bulls’ resilient state to buy on the dips. The week that ended resulted in a 4.63% fall in the India VIX, closing at the lowest level since mid-December 2022 (on a weekly basis). And with an expected gap-up opening on Monday, the reading is further poised to decline.

Talking specifically for the Jan 2023 monthly expiry, 18,200 to 18,250 would act as resistance. As long as the key support of 17,800 is not breached (on a closing basis) the trend remains positive. This means there is a downside potential of 250 points from the CMP, but that does not mean that the trend is negative. Even if the index faces selling pressure at the top end of the resistance (mentioned above) then the likelihood of a sideways move could persist by the closing of the next week. Thursday is a holiday on account of Republic Day.

One thing to note is that the upcoming week would be full of results that could lead to some volatility, especially the Reliance Industries’ (NS: RELI )  one. The largest listed company having a market capitalization of INR 16,24,338 crores declared its Q3 FY23 earnings this week, reporting a 15% YoY decline in net profit to INR 15,792 crores, which might drag Nifty a bit on Monday as it holds a decent 10.14% weightage in the index. However, to some extent, it was already discounted in the last session    

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  • Pradeep Gupta @Pradeep Gupta
    indian trading market the best platform of investing..
    Like 0
  • Sohail Bagwan @Sohail Bagwan
    Great Bro
    Like 1
    • Aayush Khanna/Investing.com @Aayush Khanna/Investing.com
      Thanks Sohail :)
      Like 0
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  • namami ghosh @namami ghosh
    excellent as always 😄
    Like 1
  • Vinoth Babu @Vinoth Babu
    Great Insight. I am already holding CE
    Like 1
  • Sudipto Roy @Sudipto Roy
    Your Nifty analyses are generally spot on. Keeping fingers crossed this time too.
    Like 2
    • Aayush Khanna/Investing.com @Aayush Khanna/Investing.com
      Thanks Sudipto
      Like 0
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  • CWS INDIA @CWS INDIA
    greatly explained next week market
    Like 4
    • Aayush Khanna/Investing.com @Aayush Khanna/Investing.com
      Thanks
      Like 0
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  • Ks Kumar Shobha @Ks Kumar Shobha
    thank you sir. best information
    Like 4
    • Aayush Khanna/Investing.com @Aayush Khanna/Investing.com
      Thank you :)
      Like 0
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