Nifty Technical Outlook
Based on Market Closing on Tuesday, January 7, 2025
The Nifty ended the previous session at 23,707.90, gaining 91.85 points (+0.39%). For the bullish trend to persist, the index must move above the critical resistance level of 23,800.
In the previous session, the Nifty opened positively at 23,679.90, reaching an intraday high of 23,795.20 during the morning trade. It then traded sideways for the rest of the session, closing at 23,707.90. Most sectors ended on a positive note, with media, metal, realty, and pharma emerging as the top performers. However, IT and auto sectors closed with a negative bias. Market breadth remained positive, with 1,933 stocks advancing, 800 declining, and 108 remaining unchanged. Among the Nifty constituents, ONGC, SBILIFE, HDFCLIFE, and TATAMOTORS were the top gainers, while HCLTECH, TRENT, TCS, and EICHERMOT were the major losers.
Technically, momentum indicators continue to signal a negative trend, with the index trading below its short-term and long-term moving averages. The formation of a small white candle on the daily chart, closing within the previous day’s range, suggests a potential phase of consolidation. On the upside, the index faces immediate resistance at 23,800, and a move above this level could sustain the positive momentum. Conversely, the nearest intraday support lies at 23,640, with additional support at 23,550 and 23,450. A break below 23,500 could resume the recent downtrend.
Intraday Levels: Support: 23,640, 23,550, 23,450 Resistance: 23,800, 23,900–24,000
Positional Trading Levels: Support: 23,500–23,300 Resistance: 24,200–24,800
The Nifty’s current technical setup indicates a cautious outlook, with resistance at 23,800 acting as a key level for sustaining the bullish trend. A decisive move above this level may signal further upside, while failure to do so could result in prolonged consolidation or a potential resumption of the downtrend. Traders should closely monitor the support at 23,500, as a breach below this level could invite additional selling pressure.
Bank Nifty Technical Outlook
In the previous session, Bank Nifty closed at 50,202.15, gaining 280.15 points (+0.56%). Despite this recovery, momentum indicators continue to suggest a negative trend, with the index trading below its short-term and long-term moving averages.
On the daily chart, the index formed a small white candle within the previous day’s range, signaling potential consolidation. Bank Nifty faces immediate intraday support at 50,000, while resistance lies at 50,400. A breakout above or below this trading band is required to establish a clear directional trend. Intraday Levels: Support: 50,000, 49,700, 49,400 Resistance: 50,400, 50,700, 51,000
Positional Trading Levels: Support: 49,600–48,300 Resistance: 50,600–52,000
Bank Nifty's current technical setup indicates a consolidation phase, with the index trading within a narrow range of 50,000–50,400. A decisive move above 50,400 could trigger a pullback rally, while a breach below 50,000 may lead to further downside pressure. Traders should exercise caution and align their strategies with key levels, awaiting a breakout for directional clarity. For positional traders, sustained movement above 50,600 could signal strength, whereas a fall below 49,600 might confirm the continuation of the bearish trend.
