Will Nifty Break Out or Break Down?
StockEdge's Morning Market Analysis - 23rd Jan - 2025
The Nifty gained 130 points over the day to close at 23,155. Yesterday, the index tested the previous day’s low but rebounded in the second half of the day, closing at the high.
The IT ?? and Pharma ?? sectors were the top gainers, while Real Estate ?? was the top loser. The advance-decline ratio on the Nifty 500 was not encouraging, but on the Nifty 50, it was neutral. FII’s ?? continue to be sellers.
Technically, the index didn't make a new low yesterday. The support area of 23,000 is still intact. The 22,800 - 23,000 zone remains an important level based on multiple technical studies. However, the trend is down. The index trades near important resistance levels ?? and the 200 EMA, making momentum plays difficult in the current scenario.
23,180 is an immediate minor resistance
23,350 - 23,500 is the major ceiling ??
Unless the bulls close above this zone and the 200 EMA, there are no clear signs of reversal.
Bank Nifty ?? has formed a long-legged Doji pattern yesterday after testing the 48,000 level. The close was near the high, and a move above yesterday’s high could push the index to test 49,500 levels.
The IT index saw a good rebound yesterday but is still below resistance and moving averages.
US markets ???? remain strong and the Dollar Index trades near 108.3.
To conclude:
The view remains the same as earlier. Volatility ?? is here to stay. The 22,800 - 23,500 range remains key for now.
For value investors – This is a good time to accumulate stocks in small amounts.
For traders and momentum players ?? – It's better to stay cautious until a clear breakout emerges.
领英推荐
Nifty
Support: 23,000, 22,800
Resistance: 23,180, 23,350
Check here: https://sedg.in/ecpka5jr
Bank Nifty
Support: 48,375, 48,200
Resistance: 49,000, 49,300
Check here: https://sedg.in/g79mcx3f
GOOD NEWS!
Get 40% OFF on StockEdge Club 2-Year & 3-Year Plans!
Use Code: TIRANGA
Hurry, offer valid for a limited time!
Avail Now - https://sedg.in/92acjril