The Indian stock market is set for a positive start on January 22, with trends indicating a rebound after Tuesday’s sharp selloff. Gift Nifty, trading at 23,161 with a premium of 60 points from the Nifty futures’ previous close, suggests an optimistic opening for the benchmark indices. However, caution prevails as analysts flag technical challenges and market uncertainties.
Market Recap: January 21
- Sensex: Closed at 75,838.36, down 1,235.08 points (1.60%).
- Nifty 50: Ended at 23,024.65, dropping 320.10 points
(1.37%).
The domestic equity market faced selling pressure throughout the day, with Nifty 50 forming a bearish candle, reflecting a decisive downside breakout.
Key Support and Resistance Levels
: Nifty 50
- Support: 22,800 and 23,000 levels.
- Resistance: 23,200 and 23,300 levels.
Analyst Insights:
According to Nagaraj Shetti, Senior Technical Research
Analyst at HDFC Securities, the broader trend has turned bearish. A breakdown
below 22,800 could lead to further declines.
VLA Ambala, Co-Founder of Stock Market Today, noted that
Nifty 50’s bearish momentum will persist unless it crosses the 23,472 level.
Sensex
- Support: 75,500 and 75,300 levels.
- Resistance: 76,000 and 76,400 levels.
Outlook:
Shrikant Chouhan, Head of Equity Research at Kotak
Securities, stated that as long as Sensex trades below 76,000, weak sentiment
will dominate. Above this level, a rebound toward 76,500 could occur.
Bank Nifty
- Support: 47,898 level.
- Resistance: 49,500 level.
Om Mehra, Technical Analyst at SAMCO Securities, highlighted
that Bank Nifty's broader structure remains bearish, with a break below 47,898
signaling further downside.
Technical Indicators
- Nifty OI Data:
- Highest Call OI: 23,200 and 23,300 (resistance).
- Highest Put OI: 23,000 and 22,800 (support).
- India VIX:
The volatility index surged 3.90%, closing at 17.06,
signaling heightened uncertainty.
- RSI:
Nifty 50’s RSI dropped to 36, indicating weakening momentum and room for further declines.
Analyst Recommendations
Avoid Bottom Fishing:
Om Mehra suggests waiting for stabilization before making
new investments, as the market remains vulnerable.
Stick to a Sell-on-Rise Strategy:
Given the volatile market conditions, analysts advise
short-term traders to focus on level-based trading.
Global Market Cues
Upbeat global markets are likely to influence the Indian
stock market positively at the open. However, continued concerns around
volatility and global uncertainties may limit any significant upward momentum.
Disclaimer:
This article reflects the views of individual analysts and broking firms. Investors are advised to consult certified financial advisors before making any investment decisions.
