NIFTY TECHNICAL OUTLOOK

Based on Market Closing on Tuesday, January 21, 2025

The Nifty closed at 23,024.65 in the preceding session, down by 320.10 points or 1.37 percent. The downtrend is expected to persist if the index falls below the short-term support level of 23,000.

In the previous session, the Nifty opened with a positive bias at 23,421.70 and briefly tested the intraday high of 23,426.30 during the morning trade. However, significant volatility dominated the session, and the index eventually closed near the day's low. All sectors ended in negative territory, with realty, banks, financial services, and auto being the worst performers. The market breadth was decidedly negative, with 631 stocks advancing, 2,095 declining, and 124 remaining unchanged. The top gainers in the Nifty were APOLLOHOSP, TATACONSUM, BPCL, and JSWSTEEL, while the major losers included TRENT, ADANIPORTS, NTPC, and ICICIBANK.

From a technical perspective, momentum indicators continue to reflect a negative trend, with the Nifty trading below its medium-term and long-term moving averages. The index formed a long black candle on the daily chart and closed below the previous six days' levels, reinforcing bearish momentum. Immediate short-term support lies at 23,000.

The Nifty remains under selling pressure, with bearish momentum dominating the trend. A decisive move below 23,000 could accelerate the decline, potentially targeting 22,500 in the near term. Conversely, a recovery above 23,100 may lead to a pullback rally, though sustained positive momentum will require a break above 23,500. Traders should remain cautious and monitor these key levels closely for directional cues.

Intraday Levels: Support: 22,975, 22,900, 22,800 Resistance: 23,100, 23,200–23,300

Positional Trading Levels: Short-Term Support: 23,000–22,500 Resistance: 23,500–24,200

BANK NIFTY TECHNICAL OUTLOOK

In the preceding session, Bank Nifty closed at 48,570.90, recording a significant loss of 770.90 points. Technically, momentum indicators suggest a continued negative trend, with the index trading below its medium-term and long-term moving averages. Additionally, the index formed a long black candle on the daily chart, closing near the session’s low. This pattern underscores the prevailing bearish sentiment for the index. On the downside, the index has immediate short-term support at the 48,300 level.

The Bank Nifty remains under pressure, with bearish momentum dominating the trend. A sustained move below 48,300 could intensify the downtrend, potentially targeting lower support levels at 47,250. However, if the index holds above this support and manages to break above 48,660, it could trigger a short-term pullback rally. Traders should monitor these critical levels and adopt a cautious approach to capitalize on market opportunities.

Intraday Levels: Support: 48,300, 48,000, 47,700 Resistance: 48,660, 49,000, 49,300

Positional Trading Levels: Short-Term Support: 48,300–47,250 Resistance: 49,600–50,700