NIFTY TECHNICAL OUTLOOK
Based on Market Closing on Thursday, January 24, 2025
The Nifty closed the previous session at 23,092.20, down 113.15 points or 0.49%. The index has short-term support at the 23,000 level, which will be crucial in determining its next direction.
In the last session, the Nifty opened with a negative bias at 23,183.90 and initially gained momentum, reaching an intraday high of 23,347.30 during the morning trade. However, the index failed to sustain the upward momentum and gradually declined, hitting an intraday low of 23,050 before closing at 23,092.20. All sectors except FMCG and IT closed with a negative bias, with metals, realty, pharma, and auto being the top losers. The market breadth remained weak, with 520 stocks advancing, 2,205 declining, and 130 remaining unchanged. The top gainers in the Nifty were HINDUNILVR, BRITANNIA, EICHERMOT, and GRASIM, while the major losers included DRREDDY, TRENT, M&M, and ADANIENT.
From a technical perspective, momentum indicators continue to signal a negative trend, with the index trading below its medium-term and long-term moving averages. Additionally, the formation of a small black candle on the daily chart and a close below the prior session’s level reflect sustained bearish sentiment. On the downside, the short-term support at 23,000 is critical; a decisive close below this level could extend the ongoing downtrend in the coming sessions. However, with momentum indicators showing oversold conditions, there is potential for a pullback rally or even a bullish reversal.
On the upside, the nearest intraday resistance is at 23,150, and the index needs to move above this level to trigger a pullback rally. Sustained momentum beyond 23,250–23,350 could strengthen the recovery.
Intraday Levels: Support: 23,050, 22,975, 22,900 Resistance: 23,150, 23,250–23,350 (15-Minute Charts)
Positional Trading Levels: Short-Term Support: 23,000–22,500 Resistance: 23,500–24,200
Bank Nifty Technical Outlook
In the previous session, Bank Nifty closed at 48,367.80, registering a loss of 221.20 points. Technically, momentum indicators suggest a continued negative trend, with the index remaining below its medium-term and long-term moving averages. The formation of a black candle on the daily chart, closing below the previous day's black candle, reinforces the bearish bias.
On the downside, the index has immediate short-term support at the 48,000 level. A close below this level could signal an extension of the downtrend in the coming days. Alternatively, the index may consolidate above this level if support holds. For a pullback rally to materialize, the index must move above the 48,800 resistance level.
Intraday Support: 48,300, 48,050, 47,850 Intraday Resistance: 48,570, 48,800, 49,150
Positional Trading Levels: Support: 48,000–47,000 Resistance: 49,600–50,700
The Bank Nifty remains under bearish pressure, with key support at 48,000 playing a crucial role in determining the index's direction. A decisive break below this level may trigger further downside, while sustained movement above 48,800 is essential to spark a pullback rally. Traders should closely monitor these levels and align their strategies accordingly.
