Nifty 50, Sensex today: What to expect from Indian stock market in trade on January 17

The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open lower on Friday, following weak global market cues.

The trends on Gift Nifty also indicate a negative start for the Indian benchmark index. The Gift Nifty was trading around 23,325 level, a discount of nearly 52 points from the Nifty futures’ previous close.

On Thursday, the domestic equity market ended higher, with the Nifty 50 reclaiming 23,200 level.

The Sensex rose 318.74 points, or 0.42%, to close at 77,042.82, while the Nifty 50 settled 98.60 points, or 0.42%, higher at 23,311.80.

Nifty 50 formed a small red candle on the daily chart with a gap up opening, which is indicating a lack of strength in the market near the hurdles.

“Nifty 50 is currently placed at the crucial resistance of around 23,350 – 23,400 levels and was not able to surpass the hurdle on Thursday,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

According to him, the negative chart pattern like lower tops and bottoms is still intact and further upside bounce with lack of strength could probably confirm the lower top reversal at the highs.

“The short-term trend of Nifty 50 is positive but the market is lacking its strength to witness sharp upside breakouts of the hurdle. A sustainable move above 23,400 – 23,450 levels could possibly bring more short covering and push Nifty towards 23,700. Immediate support is placed at 23,150,” Shetti said.

Here’s what to expect from Nifty 50 and Bank Nifty today:

Nifty OI Data

On option front, Maximum Call OI (Open Interest) is at 24,500 then 24,000 strike while Maximum Put OI is at 22,000 then 23,000 strike. Call writing is seen at 23,300 then 24,000 strike while Put writing is seen at 23,000 then 22,500 strike, said Chandan Taparia, Head, Equity Derivatives & Technicals, Wealth Management, MOFSL.

Option data suggests a broader trading range in between 22,800 to 23,700 zones while an immediate range between 23,100 to 23,500 levels, he added.

Nifty 50 Prediction

Nifty 50 continued with a gradual upside momentum with a range bound action on January 16 and closed the day higher by 98 points amidst range movement.

“The near term sentiment might remain volatile. On the upside, 23,400, might continue to remain as crucial resistance and only a decisive move above 23,400 may lead to higher levels. Meanwhile, support is seen at 23,150 / 23,000,” said Rupak De, Senior Technical Analyst at LKP Securities.

Mandar Bhojane, Research Analyst at Choice Broking noted that the Nifty 50 continues to consolidate around its crucial support at 23,200.

“Yesterday’s close above 23,300 has bolstered near-term bullish sentiment. A breakout above the key resistance level of 23,400 could trigger a rally toward 23,600 and 23,800, especially as the RSI at 39.04 signals improving buying momentum. However, market participants should remain cautious amid Q3 corporate earnings announcements, which could amplify volatility. A downside breach below 23,100 may open the door for further declines to 22,800 and 22,600,” Bhojane said.

VLA Ambala, Co-Founder of Stock Market Today, said that the Nifty formed a bearish Marubozu candlestick pattern during the last session, suggesting selling pressure in the broader market.

“Amid these developments, Nifty is expected to find support between 23,250 and 23,150 and face resistance near 23,430 and 23,480 in the next session,” said Ambala.

Bank Nifty Prediction

Bank Nifty ended 527.00 points, or 1.08%, higher at 49,278.70 on Thursday, forming a bullish candlestick pattern on the daily charts.

“Bank Nifty, witnessing a decent pullback, has closed above the 49,000 zone, slightly improving the bias; further ahead, a decisive close above the critical 49,700 level shall establish conviction for further rise in the coming days. The PSU Banks have started picking up with volume participation witnessed, and for the index, a decisive move past the 200-period MA at the 50,800 level shall further strengthen the trend overall,” said Vaishali Parekh, Vice President — Technical Research at Prabhudas Lilladher.

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