The Indian stock market is likely to open slightly lower on January 20 amid mixed global cues and uncertainty around the trade conflicts between the US and Europe. GIFT Nifty suggests a flat-to-negative open, with the index trading at 25,595, which is just 2 points less than the previous close of Nifty futures.
On Monday, for the second day in a row, the domestic benchmark was down as investors remain cautious amid continued FIIs outflows and the mixed Q3 corporate earnings, coupled with the fluctuating global bond yields. The Sensex lost 324 points or 0.39% to close at 83,246, while the Nifty 50 dropped by 108 points or 0.42% to end at 25,585.
On the daily chart, the Sensex has formed a bearish candle, which signals that the selling pressure continues at higher levels.
The support for the index is found at 83,000-82,800, where a considerable open interest in options is present, making it a critical area for short-term market direction.
In case the price drops below this band, it could intensify the downward pressure. The 83,700-83,800 zone remains a strong resistance level.
The Nifty 50 is currently trading close to the lower limit of its recent moving range of 25,900-25,500.
The index formed a negative candle with a long lower shadow, implying that there is a buying interest at the support level, but strong bullish confirmation is lacking.
The 25,500 level is a critical support, supported by maximum put open interest for the ongoing weekly expiry.
If this level is held, it may lead to a short-term upward move. Conversely, if a fall below 25,500 occurs, it may trigger weakness toward 25,200. As for the uptrend, 25,700-25,800 is the key resistance level.
Bank Nifty ended Monday’s session at 59,891, down 0.34%, forming a bearish candle with a long lower shadow. This indicates buying interest at lower levels.
The index remains in consolidation, and the 60,200-60,300 range is a crucial resistance zone. If a daily close above this zone happens, it may lead to 60,800.
The support is around 59,600-59,500, and if the price falls under this area, it may trigger a short-term pullback to the levels of 59,200-59,000.
Investor sentiment remains volatile because of renewed trade war fears between the US and Europe, increasing global bond yields, and the risk-off sentiment has spread over the global markets.
The uncertainty of potential US tariffs on Europe has added to volatility and has led investors to seek secure assets like gold.
Despite the challenges, the IMF has revised India’s GDP growth forecast upwards to 7.3% for FY26, despite the short-term challenges.
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