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Market Outlook
  • January 23, 2025
  • Jose Mathew T

Daily insights into the world of trading

NIFTY TECHNICAL OUTLOOK

Based on Market Closing on Wednesday, January 22, 2025

The Nifty closed at 23,155.35 in the preceding session, gaining 130.70 points or 0.57 percent. A continuation of the positive bias depends on the index moving above the intraday resistance level of 23,200.

In the previous session, the Nifty opened with a positive bias at 23,099.20 but gradually declined to an intraday low of 22,981.30 during the morning trade. However, the index recovered in the afternoon session, bouncing back to test the intraday high of 23,169.60 before closing at 23,155.35. Sectoral performance showed IT, pharma, financial services, and private banks leading the gains, while realty, media, PSU banks, and metals closed on a negative bias. The market breadth was negative, with 612 stocks advancing, 2,143 declining, and 97 remaining unchanged. The biggest gainers were WIPRO, INFY, TCS, and TECHM, while the major losers were BEL, TATAMOTORS, TRENT, and POWERGRID.

From a technical perspective, momentum indicators continue to signal a negative trend, with the Nifty trading below its medium-term and long-term moving averages. However, the formation of a small white candle on the daily chart, coupled with a close near the day's high, suggests buying interest near the support zone. Immediate intraday resistance is at 23,200, and the index must move above this level to sustain the positive momentum. Failure to do so may result in consolidation below this level. On the downside, the nearest short-term support is at 23,000. A close below this level could trigger a resumption of the recent downtrend.

Intraday Levels: Support: 23,100, 22,975, 22,900 Resistance: 23,200, 23,300–23,400 (15-Minute Charts)

Positional Trading Levels: Short-Term Support: 23,000–22,500 Resistance: 23,500–24,200

 

BANK NIFTY TECHNICAL OUTLOOK

Bank Nifty closed at 48,724.40 in the preceding session, registering a gain of 153.50 points. Despite the recovery, momentum indicators continue to suggest a negative trend, with the index trading below its medium-term and long-term moving averages.

The index formed a Doji candle on the daily chart, reflecting indecision in the market. However, the long lower shadow of the candle indicates buying interest near the short-term support level of 48,000. On the higher side, immediate intraday resistance is seen at 48,900. A breakout above this level could lead to a continuation of the positive trend today. Conversely, if the index moves below the 48,000 support level, the bearish momentum may resume.

Intraday Levels: Support: 48,600, 48,300, 48,000 Resistance: 48,900, 49,250, 49,600

Positional Trading Levels: Short-Term Support: 48,000–47,000 Resistance: 49,600–50,700


The Doji candle formation signals market indecision, but the long lower shadow highlights strong buying interest near 48,000. A sustained move above 48,900 could strengthen the positive bias and push the index toward higher resistance levels at 49,250 and 49,600. However, failure to hold above 48,000 may lead to renewed selling pressure, targeting support at 47,000. Traders should monitor these key levels for short-term opportunities while remaining cautious of the broader negative trend.


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