Nifty Technical Outlook
Based on Market Closing on Thursday, January 9, 2025
The Nifty ended the session at 23,526.50, declining by 162.45 points (-0.69%). The downtrend is likely to persist if the index closes below the crucial short-term support level of 23,500.
In the previous session, the Nifty opened on a negative note at 23,674.80 and maintained its downward trajectory throughout the day. It hit an intraday low of 23,503.10 before closing near that level. Most sectors closed with a negative bias, except FMCG, which remained positive. The biggest sectoral losers were realty, PSU banks, metal, and IT. Market breadth was weak, with 651 stocks advancing, 2,056 declining, and 134 remaining unchanged. Key gainers among Nifty constituents included BAJAJ-AUTO, NESTLEIND, HINDUNILVR, and BRITANNIA, while major losers were SHRIRAMFIN, ONGC, BPCL, and COALINDIA.
Technically, momentum indicators reflect a negative trend, and the Nifty continues to trade below its short-term and long-term moving averages. The formation of a small black candle on the daily chart, closing near the session's low, underscores the bearish sentiment. Immediate support lies at 23,500, and a sustained close below this level could extend the downtrend toward the next support at 23,250. On the upside, intraday resistance is seen at 23,640, and the index must surpass this level to initiate a pullback rally.
Intraday Levels: Support: 23,500, 23,400, 23,300 Resistance: 23,640, 23,750–23,860
Positional Trading Levels: Support: 23,500–23,250 Resistance: 24,200–24,800
The Nifty’s technical setup highlights a bearish outlook, with a strong possibility of further downside if the index closes below 23,500. However, any sustained buying near the support zone could trigger a recovery. A break above the resistance at 23,640 is essential for a pullback rally, while failure to do so may result in extended consolidation or further declines. Traders should exercise caution and monitor these critical levels closely for actionable trading opportunities.
Bank Nifty Technical Outlook
In the previous session, Bank Nifty closed at 49,503.50, declining by 331.55 points (-0.67%). Momentum indicators point to a negative trend, with the index continuing to trade below its short-term and long-term moving averages. The formation of a black candle on the daily chart, coupled with a close below the prior day's level, reinforces the bearish sentiment and suggests the likelihood of further downside.
The index faces short-term resistance at 49,600, and failure to surpass this level could extend the downtrend in the coming sessions. Immediate intraday support is at 49,200 levels.
Intraday Levels: Support: 49,200, 48,900, 48,600 Resistance: 49,600, 50,000, 50,400
Positional Trading Levels: Support: 48,300–47,250 Resistance: 49,600–50,600
Bank Nifty’s technical structure highlights a continued bearish outlook, with the index struggling to break above its resistance at 49,600. A sustained move below 49,200 could intensify selling pressure, targeting deeper support zones. Conversely, a break above 49,600 may provide temporary relief, with the potential for a pullback rally toward 50,000. Traders should approach the market cautiously, keeping a close watch on these critical levels for informed decision-making.
