Market Analysis from HDFC Securities
by Mr. Nandish Shah – Deputy Vice President, HDFC Securities
🕗 Last Update: 24 January 2026, 8.00 PM
Analysis for 27 January 2026
Nifty Plunges 241 Points to Three Month Low Amid Widespread Selling
After a brief pause, the Nifty resumed its downtrend, plunging 241 points to close at 25,048, its lowest level in this ongoing correction. After opening higher on the back of strong global cues, Nifty witnessed profit booking at higher levels and continued throughout the day. NSE cash market turnover was down by 8% compared to previous session. On a weekly basis, Nifty lost 2.51%, marking its lowest close since the week ending October 3, 2025.
Dr Reddy, ONGC, and Tech Mahindra led gains from Nifty pack, while Adani enterprise, Adani ports, and ETERNAL bore the brunt of selling and ended as top laggards.
Selling proved broad-based, dragging all sectoral indices into the red. Amongst them, Realty, Media, PSU Banks, and Auto fell the most.
The pain intensified in the broader market, where the Nifty Midcap 100 and Nifty Smallcap 100 plummeted 1.80% and 1.95%, respectively. After a day day of respite, market breadth deteriorated sharply; the BSE advance-decline ratio collapsed to 0.46, signaling aggressive selling across mid and small-cap segments.
The rupee weakened 31 paise against greenback to 91.97 level, hitting a record low under heavy dollar demand from importers and corporates ahead of the long weekend and Union Budget. Domestic equities’ fresh selloff amplified this fragility, wiping out Thursday’s gains.
Nifty has violated crucial support of 200 days SMA and EMA, which is bearish sign on the positional charts. Immediate support for the Nifty is seen near recent swing low of 24900, breach of which could drag the index towards the next support of 24600. On the upside, band of 25200-25300 could offer immediate resistance.
