After a stellar run in 2021, global equity markets are gearing up to welcome 2022 on a cautious note. What are the risks? Which sectors may shine? Also, find out key triggers for the markets today
Easing concerns about the potential severity of the Omicron variant lifted world stocks on Tuesday.
According to White House Chief Medical Advisor Dr. Anthony Fauci, the initial data regarding the variant was ‘encouraging’, which bolstered the confidence of market bulls.
The S&P BSE Sensex vaulted 1,150 points intra-day but ended 886 points higher at 57,634. The Nifty50, meanwhile, ended above the 17,150-mark.
However, caution is the word on the Street as technical indicators suggest a volatile phase ahead.
According to tech charts, the current volatility has disrupted the positive momentum in the markets, dragging the benchmark Sensex towards the previous reversal mark.
Given this, the index is facing stiff resistance at the 59,000 level, while it has near-term support at 57,000.
As regards Nifty, the index is striving to hold the support of the 100-days moving average, which is placed at 17,195. The immediate resistance comes at 17,550 and support stands at 16,600 levels.
In the broader markets, the Nifty MidCap100 and the Nifty SmallCap 100 have managed to hold their support levels. The indices may see up to a 5 percent upside in the near term.
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