Indian stock markets are expected to start on Friday, January 23, with a cautious approach as investors assess improving global cues. The derivatives market points to a flat start, with GIFT Nifty trading at 25,345, down 4 points from its last Nifty futures close.
On Thursday, benchmark indices ended a three-session losing streak, supported by short-covering and selective buying. The Sensex climbed 397.74 points or 0.49% to close at 82,307.37, while the Nifty 50 advanced 132.40 points or 0.53% to 25,289.90.
The Sensex trades within a range, currently indicating hesitation among traders amid volatility.
The index maintains its position above 81,900, which serves as an important support. If a break below this level happens, it could drag the index towards 81,500.
On the upside, the 82,900-83,200 zone is emerging as a strong resistance band, where selling pressure has consistently capped rallies.
The Nifty 50’s recovery above its 200-day EMA near 25,130 is a constructive technical development, but analysts caution that the broader near-term trend remains weak.
Immediate support is around 25,130, followed by the 24,900-25,000 zone, the recent swing low.
On the upside, the resistance is at 25,400, while a sustained close above 25,500 would confirm the short-term bottom reversal.
Derivatives data indicate heavy call writing at the 25,400 strike and notable put writing at the 25,200 level until a breakout is observed.
The India VIX cooling toward 13 also indicates a decrease in fear levels.
Bank Nifty gained 0.68% to close at 59,200.10, forming a doji candle that reflects indecision after the recent rebound. The index has moved above its 50-day EMA, pointing to improving short-term momentum.
The 59,500-59,600 zone remains a key resistance, and a sustained breakout above this level could trigger a rally toward 60,100, followed by 60,600.
On the downside, 58,800-58,700 is a strong support; a break below this level will likely invite renewed selling pressure.
Also Read: US Stock Market Today: S&P 500 & NASDAQ Climb as Tech Leads and Economic Data Beats Expectations
SAIL is trading near Rs. 152 after breaking out of a consolidation phase and may move toward Rs. 163, provided it holds above the stop-loss level of Rs. 146.
JK Tyre, currently around Rs. 520, has also witnessed a bullish breakout and could advance toward Rs. 556 as long as it remains above Rs. 502.
Eternal remains in a strong uptrend, with potential upside toward Rs. 310 while maintaining support above Rs. 260.
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