By theindianinvestor 
Tuesday, 28th January 2025
Time : 7:45 AM IST
1. Yesterday, Nifty fell by 263 points and closed at 23,829.
2. The fall was due to concerns over valuations for tech stocks related to AI in the US, where “DeepSeek,” a Chinese startup, compared its AI model with OpenAI’s ChatGPT. The results were reportedly better than ChatGPT. This news spread globally within days, and DeepSeek has deeply shaken world markets.
3. It was a broad-based sell-off, with almost all sectors closing in red. The sell-off was mainly in IT.
4. Comparatively, BankNifty was more stable due to ICICI Bank, which provided good support.
5. FIIs sold more than Rs. 5,000 crores in the cash market.
6. FIIs appear to be in the mood to cover their shorts in index futures. Yesterday, they covered nearly 31k shorts and added 7.5k longs. Their shorts now stand at 77% vs. 80% the previous day.
7. RBI has taken measures to infuse liquidity into the banking system, which is positive for banks.
8. Yesterday, India VIX shot up by 8%, closing above 18, hitting a 5-month high.
9. On Wednesday, we have the US Fed outcome. Expectations are there will be no rate cut. If there is any rate cut, as Trump suggested by asking Powell to cut rates, it will be a big positive for all markets.
10. Expectations are now building around the budget.
11. US markets ended mixed, with the Nasdaq down by more than 3%, but the Dow Jones ended positive. The sell-off was mainly in tech stocks, with Nvidia falling nearly 17%.
12. Dow futures are trading almost flat as of now.
13. Asian markets are mixed.
14. GIFT Nifty is indicating a gap up of more than 100 points in Nifty.
15. The question is whether the gap up will sustain or not. Even if the gap up sustains in the first half, we are seeing sell-offs in the second half.
16. Nifty support can be around 22,500-22,600, and resistance can be 23,000.