Markets close lower; Banking stocks outperform

27 Jan 2022 , 03:20 PM

Domestic markets witnessed a sharp recovery during the second half of the trade as across the board short-covering weighed in. Bank Nifty outperformed the Nifty index by ~1.9% with the former closing in the green while the later closing was ~0.8% lower.

Across the board, buying was seen in major financial heavyweights with stocks like Axis Bank and SBI contributing the majority of the gains for the index, along with an addition of heavy long positions.

Nifty Midcap 100 index closed ~1% lower. Market breadth ended in the favour of the declines with the advance/decline ratio closing at 2:3x. Bank Nifty saw an unwinding of short positions during the day.

On the options front (January 27, 2021 expiry), across the board writing was seen in the put option strikes as the Bank Nifty index trended higher.

India Vix index closed at 21, down ~1.65%.

Top 2 F&O Gainers:	CAN BANK & SRTRANSFIN
Top 2 F&O Losers:	TORRENT PHARMA & INDIA MART
Nifty	-125 @17,153
Bank Nifty	+275 @37,982