Nifty 50 and Sensex Today: Anticipated Trends in the Indian Stock Market for January 24th
Nifty 50 and Sensex Today: The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open higher on Friday, following positive global market trends.
The Gift Nifty is currently trading around 23,303, showing a premium of nearly 40 points from the previous close of Nifty futures. This indicates a positive start for the Indian benchmark index.
In Thursday’s trading session, the domestic equity market saw gains, with the Nifty 50 closing above the 23,200 level. The Sensex increased by 115.39 points, or 0.15%, closing at 76,520.38, while the Nifty 50 settled 50.00 points, or 0.22%, higher at 23,205.35.
The Nifty 50 formed a small positive candle on the daily chart with a minor upper shadow. According to Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, this market action suggests a gradual follow-through upmove amidst range movement. The bearish lower tops and bottoms pattern remains intact, and the current pullback rally may lead to another lower top formation in the short term. The broader high low range is maintained between 23,400 – 23,000 levels. After bouncing back from the lower range, the Nifty is expected to gradually move towards the upper range of 23,400 levels in the near future.
According to the expert, breaking above the 23,400 level could spark renewed buying interest in the market, with immediate support at 23,000.
Here’s what to expect from the Sensex, Nifty 50, and Bank Nifty today:
Nifty Open Interest (OI) data shows the highest OI on the call side at the 23,300 and 23,500 strike prices, indicating strong resistance levels. On the put side, OI is focused at the 23,000 and 22,800 strike prices, suggesting key support levels, as noted by Hardik Matalia, Derivative Analyst at Choice Broking.
The Sensex continued its positive trend on Thursday, closing 115 points above the 76,500 level.
“Technically, the market maintained positive momentum throughout the day, forming a reversal pattern on the daily charts, supporting a further uptrend from current levels. As long as the Sensex remains above 76,200, the pullback formation is expected to continue,” said Shrikant Chouhan, Head of Equity Research at Kotak Securities.
The Sensex is expected to rebound to the range of 77,000 – 77,100 if it remains on the higher side. However, if it drops below 76,200, the sentiment may shift, leading to a retest of levels between 76,000 – 75,700.
Regarding the Nifty 50 prediction, the index saw a minor uptrend with range-bound action on January 23, closing the day 50 points higher.
Rupak De, Senior Technical Analyst at LKP Securities, noted that the Nifty 50 failed to break above the 50 EMA on the hourly chart, suggesting selling pressure at higher levels. The bearish trend is expected to continue as long as the index remains below 23,400, with support levels at 23,150 and 23,000.
Om Mehra, Technical Analyst at SAMCO Securities, highlighted a recovery in Nifty 50 following a Hammer candlestick formation near the critical support zone at 23,000, signaling a potential reversal. He mentioned a double-bottom formation on the hourly chart, indicating a bullish setup. However, a breakout above 23,400 is crucial to confirm a shift from bearish to bullish. The index is currently near its 9 EMA, with the daily RSI showing signs of recovery.
The advance-decline ratio is improving gradually, suggesting a balance in the market. Support is seen at the 23,000 level, with the India VIX settling at 16.69. A drop below 16 could boost bullish momentum, according to Mehra.
VLA Ambala, Co-Founder of Stock Market Today, expects the market to remain sideways to bearish in the short term, with increased volatility ahead of the budget, potentially leading to a rise in the India VIX.
In this scenario, Ambala recommends investors hedge their portfolios and maintain a long-term view of 2 to 3 years. The Nifty 50 is expected
Bank Nifty Forecast
The Bank Nifty index concluded Thursday’s trading session at 48,589, dropping 135.40 points, or 0.28%. Unfortunately, the index was unable to take advantage of the Dragonfly Doji formation from the previous session.
According to Om Mehra, “Bank Nifty is currently near its 9 EMA, with the daily RSI showing signs of recovery from lower levels but still indicating a downward trend. Looking at the hourly chart, Nifty Bank is positioned close to the middle Bollinger Band, suggesting a lack of clear direction. A breakout above 48,750 could signal further upward movement, while a drop below 48,250 might indicate a shift towards bearish sentiment.”
In the short term, the index seems to be gearing up for sideways movement, with the possibility of volatility in both directions as it awaits clearer signals for its next move.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.