NIFTY TECHNICAL OUTLOOK
Based on Market Closing on Monday, January 20, 2025
The Nifty closed at 23,344.75 in the preceding session, gaining 141.55 points or 0.61 percent. The positive bias may persist if the index surpasses the immediate intraday resistance at 23,400.
In the previous session, the Nifty opened positively at 23,290.40 and briefly tested the intraday low of 23,170.70 during morning trade. Subsequently, the index gradually climbed, reaching an intraday high of 23,391.10 before settling at 23,344.75. Most sectors, except auto and FMCG, closed with a positive bias. Banks, financial services, metals, and media sectors emerged as the top gainers. The market breadth was strong, with 1,739 stocks rising, 979 declining, and 132 remaining unchanged. The biggest gainers among Nifty constituents were KOTAKBANK, WIPRO, BAJFINANCE, and BAJAJFINSV, while the major losers included SBILIFE, TRENT, SHRIRAMFIN, and ADANIPORTS.
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 index formed a small white candle on the daily chart, closing above the previous session's level, which indicates a slight positive bias.
On the higher side, intraday resistance lies at 23,400. If the index breaks above this level, the positive momentum could extend toward the next resistance at 23,500. A strong uptrend will require the index to close decisively above 23,500. On the downside, immediate intraday support is at 23,325.
Intraday Levels: Support: 23,325, 23,250, 23,150 Resistance: 23,400, 23,500–23,600
Positional Trading Levels: Support: 23,000–22,500 Resistance: 23,500–24,200
The Nifty’s technical structure suggests a cautiously optimistic outlook, provided the index surpasses the immediate resistance at 23,400. A decisive move above 23,500 is necessary for sustained bullish momentum. However, failure to break these levels could result in consolidation or a resumption of the broader downtrend. Traders should closely monitor the critical support and resistance levels to align their strategies with market movements.
BANK NIFTY TECHNICAL OUTLOOK
In the preceding session, Bank Nifty closed at 49,350.80, registering an impressive gain of 810.20 points. Technically, momentum indicators continue to reflect a negative trend, with the index trading below its medium-term and long-term moving averages. However, the formation of a white candle on the daily chart and a close above the previous day's level signal a positive bias for the index.
On the higher side, the index faces short-term resistance at the 49,600 level. A decisive close above this level could shift the short-term trend to positive, opening the path for further upside. Conversely, failure to break this resistance may lead to consolidation below this level for a few days.
Intraday Levels: Support: 49,300, 49,000, 48,700 Resistance: 49,600, 49,900, 50,200
Positional Trading Levels: Support: 48,300–47,250 Resistance: 49,600–50,700
The Bank Nifty's current technical setup reflects a cautious optimism. While the broader trend remains bearish due to its position below key moving averages, the recent positive close and white candle formation suggest the potential for a short-term recovery. A breakout above 49,600 could pave the way for further gains, while a failure to sustain above this level might result in consolidation or a continuation of the downtrend. Traders should align their strategies with the critical support and resistance levels to capitalize on market movements.
