Nifty Technical Outlook
Based on Market Closing on Wednesday, January 8, 2025
The Nifty closed at 23,698.95, declining marginally by 18.95 points (-0.08%). For the bearish trend to persist, the index needs to break below the critical intraday support level of 23,640.
In the previous session, the Nifty opened positively at 23,746.70 and tested the intraday high of 23,751.80 during the morning trade. However, selling pressure pushed the index to an intraday low of 23,496.20 before it recovered during the closing session to settle at 23,698.95. Most sectors, except IT and FMCG, ended in the red. The biggest losers included pharma, financial services, PSU banks, and media. Market breadth was negative, with 852 stocks advancing, 1,849 declining, and 140 remaining unchanged. Among the Nifty constituents, ONGC, RELIANCE, TCS, and ITC were the top gainers, while APOLLOHOSP, TRENT, SHRIRAMFIN, and BAJAJ-AUTO were the major losers.
Technically, momentum indicators suggest a negative trend, with the index trading below its short-term and long-term moving averages. The formation of a small black candle on the daily chart, combined with a long lower shadow, indicates buying interest near the support zone. On the upside, the Nifty faces intraday resistance at 23,800, while immediate support lies at 23,640. A move below 23,640 could continue the bearish momentum, while a break above 23,800 is required for a pullback rally to materialize.
Intraday Levels: Support: 23,640, 23,500, 23,400 Resistance: 23,800, 23,900–24,000
Positional Trading: Short-term support - 23500 -23300 Resistance - 24200- 24800.
The Nifty’s technical setup points to a cautious outlook. A breach of 23,640 could intensify the downtrend, potentially targeting lower support levels. However, the buying interest observed near the lows suggests that a recovery is possible if the index sustains above this support. To regain bullish momentum, the index must break and sustain above 23,800. Traders should remain vigilant and align their strategies with these key levels, closely monitoring market behavior for directional cues.
Bank Nifty Technical Outlook
In the previous session, Bank Nifty closed at 49,835.05, down by 367.10 points (-0.73%). 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 black candle on the daily chart, closing below the prior day's candle, reinforces the bearish sentiment and the potential for further downside.
The index has key short-term support at 49,600, which was briefly breached in the last session before recovering to close above this level. A sustained close below 49,600 could confirm a continuation of the downtrend in the coming days. Conversely, holding above this support may lead to a pullback rally from the support zone.
Intraday Levels: Support: 49,750, 49,400, 49,100 Resistance: 50,050, 50,400, 50,750
Positional Trading Levels: Support: 49,600–48,300 Resistance: 50,600–52,000
Bank Nifty’s technical indicators point to a bearish bias, with the index under pressure to hold its critical support at 49,600. A break below this level could accelerate selling momentum, targeting deeper supports at 49,400 and 49,100. On the upside, resistance at 50,050 and 50,400 needs to be cleared for any meaningful recovery. Traders should remain cautious and align their strategies with these levels, focusing on breakouts or breakdowns for directional trades.
