Nifty 50, Sensex today: What to expect from Indian stock market in trade on January 21 after Donald Trump Inauguration

The Indian stock market indices, Sensex and Nifty 50, are likely to open higher on Tuesday, tracking rally in global peers after Donald Trump was sworn-in as the US President.

The trends on Gift Nifty also indicate a mildly positive start for the Indian benchmark index. The Gift Nifty was trading around 23,415 level, a premium of nearly 15 points from the Nifty futures’ previous close.

On Monday, the domestic equity market ended higher, with the Nifty 50 settling above the 23,300 level

The Sensex gained 454.11 points, or 0.59%, to close at 77,073.44, while the Nifty 50 settled 141.55 points, or 0.61%, higher at 23,344.75.

Nifty 50 formed a bullish hammer pattern on the daily chart, suggesting a potential change in trend.

“Over the past six days, Nifty 50 was trading within a narrow range of 350 points and is currently positioned at its 50-week EMA (Exponential Moving Average), an important level for medium- and long-term investors trying to average their positions. However, in such conditions, stock selection is key, and the focus should be on value-buying in sectors poised for growth,” said VLA Ambala, Co-Founder of Stock Market Today.

From the technical perspective, he is of the view that the Nifty 50 can hover for support near 23,300 and 23,260 and face resistance between 23,430 and 24,620 in the next session.

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

Nifty OI Data

Derivatives data revealed the highest call open interest (OI) at the 23,600 and 23,800 levels, while the highest put OI was concentrated at 23,200, signaling a tightly contested range for the market, said Mandar Bhojane, Research Analyst at Choice Broking.

Overall, the market remains poised for directional movement, with a close watch on key resistance and support levels to determine the next trend, he added.

Nifty 50 Prediction

Nifty 50 rallied 141.55 points, or 0.61%, to close at 23,344.75 on January 20.

“On the technical front, the Nifty 50 continues to consolidate near its crucial support zone of 23,400 – 23,100. Yesterday’s close above 23,300 has strengthened short-term bullish sentiment. A breakout above 23,400 could set the stage for a rally toward 23,600 and 23,800, supported by improving buying momentum as indicated by the RSI at 41.34,” said Bhojane.

However, according to him, a downside breach below 23,100 could lead to declines toward 22,800 and 22,600.

Om Mehra, Technical Analyst, SAMCO Securities, highlighted that after a phase of consolidation and base formation around the 23,150 – 23,200 zone, Nifty 50 appears to be gathering momentum for an upward move.

“The RSI on the hourly chart has rebounded from lower levels, showing a positive divergence that further strengthens the bullish outlook. The MACD momentum indicator, with its narrowing histogram, suggests a reduction in bearish pressure, indicating the potential for consolidation or a minor pullback. Nifty is approaching the resistance zone at 23,400. A breakout above this level could open the door for an extended rally toward 23,550–23,570 levels, further confirming bullish momentum,” Mehra said.

Dr. Praveen Dwarakanath, Vice President of Hedged.in, noted that the Nifty 50 index was picking up momentum on the upside after a fall of more than 12% from its all-time high levels.

“Nifty 50 index closed above its previous day’s high, indicating mild bullishness in the index. The index has an immediate resistance at the 23,400 level, a break of which can take the index to 23,800 and 24,200 levels. The momentum indicators are well below the oversold region, which can act as a reason for a bounce in the index from the current level,” said Dwarakanath.

Options writer’s data for the January monthly expiry showed increased writing of the calls and puts at the 23,400 and above levels, indicating a range-bound move in the index, he added.

Bank Nifty Prediction

Bank Nifty surged 810.20 points, or 1.67%, to close at 49,350.80 on Monday, forming a bullish engulfing pattern on the daily chart, signaling a potential reversal in sentiment.

“Bank Nifty tested its resistance at the 49,600 level, however, it was rejected. The index managed to close above its previous 6 trading day’s high, indicating strength in the index. The index has closed above its 10-day moving average, with early signs of upside in the index. The momentum indicators are in the oversold region, which can be a possible reason for a bounce in the index from the current level,” said Dr. Praveen Dwarakanath.

Options writer’s data for the monthly expiry showed increased writing of the puts at the 49,500 and below level, suggesting a strength in the index, he added.

Om Mehra noted that the Bank Nifty index violated the 38.2% Fibonacci retracement level at 49,500, weakening this resistance zone and paving the way for further upside.

“Nifty Bank may encounter minor resistance around the psychological mark of 50,000. A decisive move above this level could pave the way for upward momentum. The index has also reclaimed its position above the 9 EMA, adding to the positive outlook. The daily RSI is rebounding from lower levels, reflecting improving momentum. Additionally, the support level has shifted higher and now stands at 48,900, strengthening the index’s bullish setup,” Mehra said.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.