Nifty Technical Outlook
Based on Market Closing on Friday, January 10, 2025
The Nifty ended the session at 23,431.50, declining by 95.00 points (-0.40%). The downtrend is expected to persist if the index remains below the short-term resistance level of 23,500.
In the previous session, the Nifty opened positively at 23,551.90, briefly touching an intraday high of 23,596.60. However, selling pressure dominated, pulling the index to an intraday low of 23,344.30 before closing at 23,431.50. Except for the IT sector, all other sectors closed with a negative bias, with the biggest losers being media, realty, PSU banks, and pharma. Market breadth was highly negative, with 411 stocks advancing, 2,328 declining, and 102 remaining unchanged. Among the Nifty constituents, the top gainers were TCS, TECHM, HCLTECH, and WIPRO, while the major losers were INDUSINDBK, ADANIENT, NTPC, and BEL.
Technically, momentum indicators continue to point to a negative trend, with the Nifty 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 key support level of 23,500 reinforce the bearish sentiment. Immediate support lies at 23,250, with further downside expected if the index closes below this level, targeting the next major support at 22,750. On the upside, intraday resistance is at 23,450, and the index needs to surpass this level for any short-term recovery.
Intraday Levels: Support: 23,350, 23,250, 23,150 Resistance: 23,450, 23,550–23,650
Positional Trading Levels: Support: 23,250–22,750 Resistance: 23,500–24,200
Bank Nifty Technical Outlook
In the previous session, Bank Nifty closed at 48,734.15, declining by 769.35 points (-1.55%). Momentum indicators reflect 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, coupled with a close near the session's low, reinforces the bearish outlook and suggests the likelihood of a continued downtrend.
On the downside, the index has immediate short-term support at 48,300, and a breach of this level could intensify selling pressure, targeting the next support at 47,000. On the upside, the nearest intraday resistance lies at 48,900.
Intraday Levels: Support: 48,600, 48,300, 48,000 Resistance: 48,950, 49,300, 49,600
Positional Trading Levels: Support: 48,300–47,250 Resistance: 49,600–50,600
Bank Nifty's technical structure suggests continued selling pressure, with the index struggling to find support at lower levels. A sustained move below 48,300 could pave the way for further declines toward 47,000. Conversely, holding above 48,900 may provide temporary relief, but a breakout above 49,600 is essential for any significant pullback rally. Traders should remain cautious and align their strategies with these critical levels to navigate the current market volatility effectively.
FII/FPI & DII Trading Activity in the Capital Market Segment (NSE, BSE, and MSEI)
Date: January 10, 2025
FIIs/FPI Activity: Net Sell: ₹ 2254 crore Total Buy: ₹ 10097 crore Total Sell: ₹ 12351 crore
DIIs Activity: Net Buy: ₹ 3961 crore Total Buy: ₹ 14293 crore Total Sell: ₹ 10331 crore
Global Market Update
On January 10, U.S. markets ended sharply lower. The Dow Jones fell by 696.75 points (-1.63%), closing at 41,938.45, while the Nasdaq declined significantly by 317.25 points (-1.63%), settling at 19,161.63. European markets mirrored this negative sentiment, with the DAX, CAC, and FTSE all closing in the red.
In Asian markets this morning, the bearish trend persisted. The NIKKEI was trading at 39,190, down by 414 points, and the HANG SENG stood at 18,891.21, registering a loss of 173 points.
As of 7:27 AM IST, the GIFT Nifty was trading at 23,325, lower than its previous close, indicating a likely negative opening for the Indian Nifty index today.