Nifty 50, Sensex today: What to expect from Indian stock market in trade on January 22

• Nifty 50, Sensex today: The trends on Gift Nifty also indicate a positive start for the Indian benchmark index. The Gift Nifty was trading around 23,161 level, a premium of nearly 60 points from the Nifty futures’ previous close.

Nifty 50, Sensex today: Nifty 50 formed a long bear candle on the daily chart that has engulfed the narrow range movement of the last six sessions on the downside.(Photo: AP)

The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open higher on Wednesday, tracking upbeat global market cues.

The trends on Gift Nifty also indicate a positive start for the Indian benchmark index. The Gift Nifty was trading around 23,161 level, a premium of nearly 60 points from the Nifty futures’ previous close.

On Tuesday, the domestic equity market crashed, with the benchmark Nifty 50 falling near 23,000 level.

The Sensex cracked 1,235.08 points, or 1.60%, to close at 75,838.36, while the Nifty 50 settled 320.10 points, or 1.37%, lower at 23,024.65.

Nifty 50 formed a long bear candle on the daily chart that has engulfed the narrow range movement of the last six sessions on the downside.

“The broader high low range of 23,400 - 23,050 is now on the verge of downside breakout. The previous opening downside gap of 13 January has weighed high on the market and that resulted in a sharp weakness,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

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According to him, the underlying trend has turned down sharply after a small upside bounce. The next lower support to be watched around 22,800 levels and any pullback rally could find strong resistance around 23,200 levels.

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

Nifty OI Data

Nifty Open Interest (OI) data indicates the highest OI on the call side at the 23,200 and 23,300 strike prices, highlighting strong resistance levels. On the put side, OI is concentrated at the 23,000 and 22,800 strike prices, marking these as key support levels, said Hardik Matalia, Derivative Analyst at Choice Broking.

Sensex Prediction

Sensex plunged 1,235.08 points, or 1.60%, to close at 75,838.36 on Tuesday, with the BSE-listed companies erasing market capitalisation of ₹7 lakh crore.

“Technically, after a gap-up open, the market consistently faced selling pressure at higher levels. This led to the formation of a long bearish candle on the daily charts, and the Sensex index closed below the 76,000 support zone, which is largely negative. We are of the view that, as long as the market trades below 76,000, the weak sentiment is likely to continue,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.

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On the downside, the market could slip as low as 75,500. Further weakness is likely to continue, which could drag the market till 75,300. However, above 76,000, the market could bounce back, moving towards 76,400 - 76,500. The current market texture is volatile, and thus level-based trading would be the ideal strategy for day traders, he added.

Nifty 50 Prediction

Nifty 50 witnessed heavy selloff on January 21 and closed the day lower by 320 points.

“Nifty 50 opened on a positive note but faced selling pressure near its 14-day EMA (Exponential Moving Average), closing with a long bearish candlestick just above the key support of 23,000 and below its consolidation range. The RSI, currently at 36 and in bearish crossover, indicates a bearish trend, suggesting room for further downside before entering the oversold zone and solidifying bearish dominance. Selling pressure continues to limit recoveries, and the follow-up move will be key to confirming further downside,” said Vatsal Bhuva, Technical Analyst at LKP Securities.

According to him, a close below 23,000 could push the index toward pre-election levels of 22,500, with immediate resistance at 23,300. Until Nifty 50 closes above 23,500, he recommends a sell-on-rise strategy.

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Om Mehra, Technical Analyst, SAMCO Securities, noted that the broader structure of lower highs and lower lows remains intact, indicating the continuation of the downtrend.

“Nifty 50 also slipped below its 9-day EMA, suggesting weakening short-term momentum. The index’s falling intensity was highlighted by a sharp rise in volatility, as the India VIX surged 3.90% intraday, closing at the 17.06 level. Notably, the VIX spiked nearly 18% in January, signaling heightened market uncertainty. The daily RSI tilted further downward now hovering near the 35 level, reflecting diminishing strength. The support is positioned at 22,800 and the primary trend remains decisively bearish,” Mehra said.

At this juncture, bottom fishing should be avoided as the market remains vulnerable. It is prudent to wait for clear signs of stabilization or reversal, he added.

VLA Ambala, Co-Founder of Stock Market Today, said that unless the Nifty 50 index crosses the 23,472 level, the bearish sentiment could prevail, especially as we approach the budget session.

“On the technical charts, Nifty 50 can expect support near 23,090 and 23,000, and resistance levels can be found near 23,310 and 23,380 in the next session. Considering the current volatility and continued global uncertainty, market participants should remain cautious in the coming weeks and stick with a sell-on-rise approach,” Ambala said.

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Bank Nifty Prediction

Bank Nifty ended Tuesday’s session at 48,570.90, registering a decline of 779.90 points, or 1.58%, and formed a bearish engulfing pattern on the daily chart, highlighting a mounting bearish outlook.

“Although the Bank Nifty index attempted to move higher, the previous resistance levels proved to be stronger, and the index lost momentum. The broader structure of lower highs and lower lows remains intact, signaling the continuation of the downtrend. The index remains below key moving averages, suggesting persistent weakness in the short term,” said Om Mehra.

The swing low remains at 47,898, and a break below this level could trigger further declines in the index. The immediate resistance remains at 49,500, which could limit any potential upward movement, 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.

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