Indian markets are expected to open lower on Monday, January 19, as global risk appetite weakens amid the new trade uncertainty from the US. The early signals from GIFT Nifty also indicate a negative opening with the index near 25,570, 180 points below its last Nifty futures close.
The negative opening signal comes after a steady close in the previous session. On Friday, the Sensex increased by 187.64 points or 0.23% to finish at 83,570.35, while the Nifty 50 gained 28.75 points or 0.11% to close at 25,694.35.
The support zone of 83,000-83,100, which has repeatedly absorbed the intraday declines, is above which the Sensex has been trading.
The analysts observe that as long as this zone holds, the broader structure is in favor of a buy-on-dips strategy; however, the upward movement will probably face resistance around 84,000-84,100.
Options data shows the 83,500 put strike having heavy open interest, reinforcing it as an important psychological and technical support. On the upside, the 84,000 call strike remains the resistance zone, where call writing is concentrated.
The Nifty 50 experienced a minor rise of just 0.04% in the previous week, implying the index is in a consolidation phase. The daily chart shows repeated long upper shadows, indicating a failure to sustain rallies at higher levels.
The index remains range-bound, with 25,500 being the key support level and 25,900-26,000 serving as the resistance zone.
Derivative data shows Put writing has strengthened around 25,500, suggesting downside protection, while aggressive call writing near 26,000 continues to cap upside attempts.
A sustained move above 25,900 could trigger short covering, while a breakdown below 25,500 may accelerate selling pressure.
Last week, the Bank Nifty increased 1.42% to close at 60,095.15. The index is positioned above the key short-term moving averages and continues in a strong uptrend.
The nearest support can be found in the range of 59,300-59,500, whereas the resistance is around 60,400-60,500.
A sustained close above this level could open the door towards 61,200, followed by 62,000 as the next target.
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The Nifty Midcap 100 was up by 0.2% and the Nifty Smallcap index went down by 0.3% at the close of last week.
According to Siddhartha Khemka, Head of Research, Wealth Management, Motilal Oswal Financial Services, "The Nifty IT index surged 3.3% after Infosys reported better-than-expected third-quarter results and upgraded its revenue growth outlook. Public sector banks extended their rally, with the Nifty PSU Bank index gaining 1.2% for the fifth straight session".
Pharmaceutical stocks declined 1.3%, while the Nifty Metal index slipped 0.5% due to profit booking after recent gains.
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