NIFTY TECHNICAL OUTLOOK

Based on Market Closing on Friday, January 17, 2025

The Nifty closed at 23,203.20, down by 108.60 points or 0.47% in the previous session. The downward bias is likely to persist if the index breaks below the intraday support level of 23,150.

In the last session, the Nifty opened with a negative bias at 23,277.10 and reached an intraday low of 23,100.30 during morning trade. However, the index recovered slightly and closed at 23,203.20. Among the sectors, realty, metal, FMCG, and pharma led the gains, while IT, banks, and financial services were the major laggards. The market breadth was slightly positive, with 1,401 stocks advancing, 1,322 declining, and 125 remaining unchanged. Key gainers included RELIANCE, BPCL, HINDALCO, and COALINDIA, while the top losers were INFY, AXISBANK, SHRIRAMFIN, and KOTAKBANK.

From a technical perspective, the momentum indicators suggest a negative trend, with the index trading below its short-term and long-term moving averages. A black candle was formed on the daily chart, and the index closed below the previous session’s level, signaling a continued bearish bias.

The Nifty continues to exhibit a bearish undertone, with momentum indicators signaling caution. Sustaining above the key support level of 23,150 is crucial for any short-term recovery. A breach below this level could intensify the selling pressure, while a move above 23,275 could provide some relief and trigger a pullback rally. Traders are advised to adopt a cautious approach, monitor key levels closely, and align their strategies accordingly.

Trading Levels

Intraday Levels: Support: 23,150, 23,050, 22,950 Resistance: 23,275, 23,360–23,450

Positional Trading: Short-term Support: 23,000–22,500 Resistance: 23,500–24,000

BANK NIFTY TECHNICAL OUTLOOK

In the last session, Bank Nifty closed at 48,540.60, recording a significant loss of 738.10 points. Technical indicators point to a negative trend, with the index trading below its short-term and long-term moving averages. The formation of a black candle on the daily chart and a close below the previous session’s level reflect a continued bearish sentiment.

Bank Nifty remains under selling pressure, with momentum indicators supporting a bearish outlook. Sustaining above 48,670 could trigger a pullback rally, offering some relief. However, a break below 48,300 may lead to further declines, with lower levels becoming the focus. Traders should monitor these key levels closely and plan their strategies accordingly..

Trading Levels

Intraday Levels: Support: 48,300, 48,000, 47,700 Resistance: 48,670, 49,000, 49,400

Positional Levels: Short-term Support: 48,300–47,250 Resistance: 49,600–50,700