The Nifty 50 shows signs of consolidation, with key resistance and support levels defining the near-term trend. Immediate resistance is seen at 23,300-23,400, with stronger hurdles around 23,500-23,600, while support lies at 23,050. Analysts recommend a cautious approach, adopting a sell-on-bounce strategy as the index remains below its 250-DSMA at 23,560.

“Technically, Nifty formed a hammer candle on the daily chart, suggesting buying interest at lower levels, while a doji on the weekly chart indicates uncertainty. Resistance is seen at 23,300-23,400, with support at 23,050,” according to Hrishikesh Yedve, AVP technical and derivatives research at Asit C Mehta Investment Interrmediates Ltd.

“However, the index sustained below its 250-Days Simple Moving Average or 250-DSMA hurdle, which is around 23,560 levels. As long as index stays below 23,560, sell on bounce strategy should be adopted,” Yedve said.

“At the higher end of the spectrum, the neckline around 23,350, followed by the 23,500-23,600 zone, is expected to present intermediate resistance, serving as potential barriers that the index may struggle to surpass in the near term,” said Osho Krishan, senior analyst, technical and derivatives, Angel One Ltd.

The December quarterly results, together with management commentary, will be closely tracked by investors, said Siddhartha Khemka, head of research, wealth management, Motilal Oswal Financial Services Ltd. “Donald Trump’s swearing in as the 47th president of the United States on Jan. 20 and the following policy announcements will have strong impact on the global market sentiments.”

Bank Nifty settled the day on a negative note at 48,541. Yedve noted that on a daily scale, the index has formed a big red candle, indicating weakness.

“On the downside, 47,900 levels will provide immediate support for the index. However, the index maintained below its 250-DSMA hurdle, which is around 49,910 levels. Traders are advised to adopt a sell-on-bounce strategy unless Bank Nifty holds above 49,910,” he said.

FII/DII Activity

Foreign portfolio investors stayed net sellers of Indian equities for the eleventh straight session on Friday and domestic institutional investors have been buyers for 22 consecutive sessions.

FPIs sold stocks worth Rs 3,318.1 crore and domestic institutional investors bought stocks worth Rs 2,572.9 crore, according to provisional data from the National Stock Exchange.

Market Recap

The benchmark equity indices extended their fall on Friday to the second consecutive week, with HCLTechnologies Ltd. and Infosys Ltd. as the top losers for the week. The NSE Nifty 50 and the BSE Sensex snapped a three-day gaining streak to close lower, ahead of the third-quarter results of Tech Mahindra Ltd. and Wipro Ltd.

The Nifty ended 108.60 points or 0.47% lower at 23,203.20, and the Sensex closed 423.49 points or 0.55% down at 76,619.33. During the session, the Nifty dropped 0.91%, or 211.45 points to 23,100.35. The Sensex declined 1.01% or 779.53 points lower at 76,263.29.

Major Stocks In News

  • Wipro: The company reported a net profit rise of 4.6% at Rs 3,354 crore versus Rs 3,208 crore in the third quarter of fiscal 2024-25.

  • Minda Corp: The company completed acquisition of 49% stake in Flash Electronics Pvt.

  • Dalmia Bharat: Dalmia Cement (Bharat) Ltd., wholly owned subsidiary of the company, has entered into share subscription and shareholders agreement to acquire 26.00% of equity share capital of Solis Urja Energy Pvt.

  • Bank of India: The company would be considering at their meeting scheduled on Jan. 23, 2025 the proposal of fund raising by issue of long term (infra) bonds.

  • Adani Energy: Adani Electricity, in pact with Adani Properties, to acquire Superheights Infraspace for Rs 475 crore.

Global Cues 

Asia-Pacific stocks powered ahead taking cues from a positive Wall Street close as traders brace for Donald Trump’s swearing-in as the 47th US president.

Australia’s S&P/ASX 200 opened higher with the benchmark index advancing by 0.42%, or 35 points, to 8,345 as of 6:45 a.m. Japan’s Nikkei was up 533 points, or 1.39% at 38,952.

The optimistic conversation between Donald Trump and Chinese leader Xi Jinping also set the tone for a positive start to trading. Further, TikTok restored service in the US as Trump announced he would extend a deadline to sell the company.

The executive orders by Trump regarding trade, immigration, energy, and regulatory reform will be closely watched by traders upon taking office. 

The World Economic Forum kicks off in Davos, Switzerland, on Monday drawing heads of state, central bankers, and business leaders to discuss pressing global issues.

Additionally, China is set to release its loan prime rates, and Japan will publish data on its tertiary index, machinery orders, and industrial production. The rate will likely be on hold for a third straight month, according to Bloomberg Intelligence.

Bitcoin traded above the $100,000 mark. The dollar index — which tracks the greenback’s performance against a basket of 10 leading global currencies — was 0.10% down at 109.23. The Bloomberg gauge of the greenback has risen over 5% in the 10 weeks since Election Day.

Meanwhile, the US stocks closed with their best weekly gains since the US November presidential election. The S&P 500 and the Dow Jones Industrial Average rose 1.00% and 0.78%, respectively. The tech-heavy Nasdaq Composite advanced 1.51%.

The ceasefire in the Gaza war began taking hold as Hamas released three hostages in exchange for 90 Palestinians held in Israeli prisons. The Brent crude was trading 0.16% higher at $80.92 a barrel as of 7:00 a.m. IST, and the West Texas Intermediate was up 0.15% at $78.00. 

Money Market

The rupee closed weaker against the US currency for the second day in a row as the dollar index rebounded, tracking sustained decline in the pound sterling and euro, in the second half of the trade. Demand for the greenback weighed on the Indian unit.

The rupee weakened by six paise to close at 86.61 against the US dollar. The domestic currency opened flat at 84.56 against the greenback, according to Bloomberg data. It had settled at 86.55 a dollar Thursday.

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