Nifty Technical Outlook
Based on Market Closing on Monday, January 27, 2025
The Nifty ended Monday’s session at 22,829.15, recording a decline of 263.05 points or -1.14%. The downtrend will persist if the index trades below the short-term resistance level of 23,000.
In the previous session, the Nifty opened on a weak note at 22,940.20 and remained under pressure throughout the day. It hit an intraday low of 22,786.90 before closing at 22,829.15. All sectors ended in the red, with the biggest losers being Media, IT, Metal, and Pharma. Market breadth was heavily negative, with 258 stocks advancing, 2,502 declining, and 95 remaining unchanged.
Among Nifty constituents, the top gainers were ICICI Bank, Britannia, M&M, and Hindustan Unilever, while the major losers included HCL Tech, Tech Mahindra, Wipro, and Hindalco.
From a technical perspective, momentum indicators continue to signal a negative trend. The index remains below its medium-term and long-term moving averages. Additionally, a black candle was formed on the daily chart, and the index closed below the previous support level of 23,000. If the Nifty trades and sustains below this critical level, the downtrend is expected to extend further. The next short-term support levels are placed at 22,650 -22,500 area. On the upside, the nearest intraday resistance is 22,900, and a move above this level is essential to trigger a pullback rally.
Intraday Levels Support: 22,850, 22,800, 22,750 Resistance: 22,950, 23,050, 23,150
Positional Trading Levels Support: 22,500, 22,000 Resistance: 23,000, 23,500
The Nifty continues to exhibit a bearish trend, with negative market breadth and technical indicators reinforcing the likelihood of further downside. Traders should watch the key support levels at 22,650 and 22,500, as a breach could intensify selling pressure. Conversely, any recovery would require the index to sustain above 22,900 to initiate a meaningful pullback. Maintaining caution and closely monitoring resistance and support levels will be crucial for navigating the current market conditions.
Bank Nifty Technical Outlook
In the preceding session, Bank Nifty closed at 48,064.65, registering a loss of 303.15 points. Technically, momentum indicators suggest a negative trend, with the index trading below its medium-term and long-term moving averages. Despite forming a white candle on the daily chart, the index closed below the previous day's close, signaling a continued negative bias.
On the downside, the index has short-term support at 48,000. A close below this level could extend the negative trend in the coming days. Alternatively, if the index sustains above 48,000, it may consolidate within a range for a few sessions. For a pullback rally to materialize, the index must move decisively above the 48,300 level.
Intraday Levels- Support: 47,900, 47,650, 47,400 Resistance: 48,300, 48,600, 48,800
Positional Trading Levels - Support: 48,000–47,000 Resistance: 49,600–50,700
Traders should remain cautious and closely monitor the critical support at 48,000. A breach could lead to further downside, while sustained trading above 48,300 may signal a recovery.
