NIFTY TECHNICAL OUTLOOK
Based on Market Closing on Thursday, January 18, 2024
The Nifty opened with a downward gap and closed at 21,462.25, down by -109.70 points or 0.51 percent. The downtrend is likely to persist if the Nifty remains below the 21,500 level.
Opening at 21,414.20 with a downward gap, the Nifty reached an intraday low of 21,285.60. Subsequently, the index gradually ascended, testing the day's high at 21,539.40 before concluding at 21,462.25. Sectors such as pharma, PSU banks, realty, and auto closed with a positive bias, while financial services, metal, and private banks were among the major losers. The market breadth was negative, with 1,098 stocks rising, 1,328 falling, and 92 remaining unchanged. SUN PHARMA, CIPLA, TECHM, and TATAMOTORS emerged as top gainers, while LTIM, HDFCBANK, NTPC, and TITAN faced significant losses.
From a technical standpoint, the Nifty remains below short-term moving averages, with momentum indicators signaling a negative trend. Although the index formed a small white candle, closing below the previous day's close indicates the potential for a downtrend. Short-term resistance is observed at 21,500, and if the index remains below this level, the downtrend may persist. To initiate a pullback rally, the index must surpass the intraday resistance of 21,540.
Intraday Support Levels: 21,420 - 21,285 - 21,200 Resistance Levels: 21,540 - 21,660 - 21,800 (15-Minute Charts)
For positional traders, short-term support levels are maintained at 21,000 - 20,500, with resistance at 21,500 - 21,820.
BANK NIFTY
In the recent trading session, Bank Nifty concluded at 45,713.55, experiencing a loss of -350.90 points. From a technical standpoint, momentum indicators suggest a negative trend, with the index positioned below both short-term and medium-term moving averages. Although a white candle formed on the daily chart, the index closed below the previous day's close. On the downside, the index has short-term support at the 45,600 level. A close below this level could sustain the negative trend in the upcoming days. To initiate a pullback rally, the index must surpass the intraday resistance at the 45,900 level.
For intraday traders, support levels are identified at 45,500, 45,150, and 45,850, while resistance levels can be observed at 45,900, 46,200, and 46,550, as indicated by the 15-minute charts.
Positional traders are advised to monitor short-term support levels at 45,600-44,650, with resistance at 47,000 - 48,500.
