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Indian stock markets recovered from early losses to snap their five-day losing streak, helped by top domestic car maker Maruti Suzuki soaring on better-than-expected margins and Axis Bank on the back of strong earnings. Sensex, which earlier fell as much as 1080 points earlier in the session in line with global peers, climbed over 350 points to settle at 57,858, while Nifty closed 0.75% higher at 17,277.

Maruti topped the Sensex gainers' chart with a jump of nearly 7% while Axis Bank ended 6.8% higher. Oil-to-retail conglomerate Reliance Industries, India's most valuable company, settled 0.2% lower after falling as much as 3% earlier in the session.

“Indian markets will react to the Fed meeting outcome in early trade on Thursday and we expect volatility to remain high, thanks to the scheduled monthly expiry. Keeping in mind the scenario, we reiterate our cautious view and suggest preferring hedged positions," said Ajit Mishra, VP - Research, Religare Broking.

Domestic markets will remain closed on Wednesday on account of Republic Day. 

Deepak Jasani, head of retail research at HDFC Securities, said while some initial weakness on January 27 cannot be ruled out, “Nifty seems to have made a near term bottom on Jan 25. 17379 could be a resistance for Nifty while 16998 could be a support in the near term."

Russia-Ukraine tensions and hawkish expectations from Fed had led to a sharp selloff in domestic markets over past five sessions.

Commenting on today's market action, Nagaraj Shetti is technical research analyst at HDFC Securities, said:  “A sharp intraday upside recovery has emerged from a day's low of 16,836 levels and the upside momentum has picked up again towards the later part of the session. The opening downside gap has been filled completely. The sharp down trend in the market seems to have halted at the important support and the market is now ready to show upside bounce. A confirmation of bottom reversal as per Tuesday's low is likely to pull Nifty towards the upper 17800 levels in the near term. Any dips could find support around 17100 levels."

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities, said: “A relief rally was on the cards as the Sensex had plunged more than 1500 points in just five sessions. Volatility will continue to stay as concerns related to geopolitical developments, rising oil prices and US Fed's likely move on rate hike will continue to keep investors on the edge. The short term formation is still in to the weak side, but the intraday texture suggests continuation of a pullback in the next couple of trading sessions. For traders, 17000 and 17100 would be the immediate support zone and if the Nifty succeeds to trade above the same, a reversal formation could lift the index upto 17400-17450 levels."

 

 

 

 

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