Nifty 50, Sensex today: What to expect from Indian stock market in trade on January 23

The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open lower on Thursday tracking mixed global market cues.

The trends on Gift Nifty also indicate a negative start for the Indian benchmark index. The Gift Nifty was trading around 23,137 level, a discount of nearly 60 points from the Nifty futures’ previous close.

On Wednesday, the domestic equity market ended higher amid short covering, with the Nifty 50 closing above 23,150 level.

The Sensex rallied 566.63 points, or 0.75%, to close at 76,404.99, while the Nifty 50 settled 130.70 points, or 0.57%, higher at 23,155.35.

Nifty 50 formed a small positive candle on the daily chart with lower shadow.

“Technically, this market action indicates an upside bounce from the lows. Though Nifty 50 closed higher on Wednesday, the overall market breadth deteriorated and the broad market indices have closed sharply lower. The negative chart pattern like lower tops and bottoms is still intact,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

According to him, the underlying trend of Nifty 50 remains weak and the market seems to have shifted into a broader range of 23,000 – 23,400 levels.

“A decisive move above the hurdle of 23,400 could open renewed buying participation in the market. However, a slide below 22,975 could open more weakness down to 22,800 ahead,” Shetti said.

Nifty OI Data

Derivatives data indicated the highest call open interest at the 23,300 and 23,500 levels, while the highest put open interest was at 23,000, highlighting a tightly contested trading range.

Overall, the market sentiment remains positive as long as the Nifty sustains above its key support level of 23,100. A decisive breakout above 23,300 could trigger further upside momentum, said Mandar Bhojane, Research Analyst at Choice Broking.

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

Sensex Prediction

Sensex witnessed a recovery from lower levels, and ended higher by 567 points on January 22.

“For day traders, 75,850 would act as a crucial support zone. If the Sensex stays above this level, the pullback formation is likely to continue. On the higher side, the market could bounce back to the range of 76,700 – 76,900. Conversely, if it falls below 75,850 the sentiment could change below the same it could decline to 75,600 – 75,500,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.

Nifty 50 Prediction

Nifty 50 showed high volatility with positive bias on January 22 and closed the day higher by 130 points.

“Nifty 50 index took support from the lower Bollinger band and bounced, owing to the HDFC results. The index also took support from the 23,000 level, which is the immediate support for the index. The index has formed an inverted hammer candle, indicating mild bullishness in the index, however, any bounce can be used to sell the index until the 23,800 level is not taken off. 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 Dr. Praveen Dwarakanath, Vice President of Hedged.in.

Options writer’s data for the January monthly expiry showed increased writing of the calls at the 23,000 and above levels, indicating a weakness still to continue in the index, he added.

VLA Ambala, Co-Founder of Stock Market Today, is of the view that the Nifty 50 can expect support near 23,050 and 22,950 with resistance at 23,370 and 23,410.

Bank Nifty Prediction

Bank Nifty index gained 153.50 points, 0.32%, to close Wednesday’s session at 48,724.40, forming a Dragonfly Doji-like candlestick pattern on the daily timeframe.

“Bank Nifty tested its support at the 48,000 level, however, it bounced owing to the HDFC results today during the markets. The index has formed an inverted hammer candle, indicating mild bullishness in the index, however, one can sell the index on a bounce until the index manages to break the 49,600 level. 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 Dwarakanath.

Options writer’s data for the monthly expiry showed increased writing of the calls at the 49,000 level, suggesting a weakness in the index, he added.

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.