The NSE Nifty 50 and Nifty Bank are at crucial technical levels, with support and resistance zones influencing market direction, according to analysts.

The Nifty is currently trading at a crucial support level of around 23,500. If the support is broken, then it can drag the index lower to the next level at 23,260, which corresponds to a previous swing low, according to Aditya Gaggar, director of Progressive Share Brokers Pvt. “For the uptrend to resume, the index would need to break above the 23,800–23,900 range.”

For the Nifty, the immediate resistance lies at the upper end of the falling channel around 23,700–23,750, according to Rajesh Bhosale, technical analyst at Angel One Ltd. “This will be followed by a stronger barrier at 23,900–24,000, marked by the 200 DSMA.”

The Nifty is close to the lower end of the 23,500–23,900 range and a further downturn will take it to November lows of 23,275, which will come into play, according to market analyst Kush Bohra.

“We have seen a rebound from the 23,500 level in the last 10–15 sessions,” he said, adding the put-call ratio, a technical indicator that helps investors and traders gauge the market’s sentiment, was close to the oversold territory.

The Bank Nifty, which ended 0.67% lower at 49,503, continues to remain under pressure, he added.

For the Nifty Bank, the 250-day simple moving average is placed near 49,900, acting as a barrier for the index. This is followed by 50,740, where the 200-DSMA is located, according to Hrishikesh Yedve, research analyst at Asit C. Mehta Investment Intermediates Ltd. “If Bank Nifty maintains below 50,740 levels, traders are advised to book profits on a bounce.”

The Bank Nifty will see further downside from the 49,500 to 49,000 level, where the most put-based concentration is observed, according to Rajesh Palviya, research analyst at Axis Securities.

Market Recap

The Indian equities ended lower for the second day in a row on Thursday as investors shed their risk appetite and raised their guard before the start of the third-quarter earnings season.

The NSE Nifty 50 ended 162.45 points or 0.69%, lower at 23,526.5, while the BSE Sensex lost 528.28 points or 0.68%, to close at 77,620.21.

FII/DII Activity

Foreign portfolio investors stayed net sellers for the fifth straight session on Thursday and sold stocks worth Rs 7,170.87 crore, while domestic institutional investors stayed buyers for the 17th consecutive session and bought stocks worth Rs 7,639.63 crore, according to provisional data from the National Stock Exchange.

F&O Action

The Nifty January futures were down by 0.46% to 23,671.10 at a premium of 110.25 points, with the open interest up by 5.52%.

The open interest distribution for the Nifty 50 Jan. 16 expiry series indicated most activity at 26,500 call strikes, with the 22,500 put strikes having maximum open interest.

Major Stocks In News

  • Tata Consultancy Services – The board has approved the acquisition of land held by TRIL units for a sum of Rs 1,625 crore, aimed at establishing delivery centers.
    Alert: TRIL stands for Tata Realty and Infrastructure.

  • Vodafone Idea – The company has allotted 169 crore shares worth Rs 1,910 crore to Omega Telecom Holdings and Usha Martin Telematics. The shares were allotted at an issue price of Rs 11.28 per share.

  • United Breweries – The company has reaffirmed its dedication to making ongoing investments in Telangana. It noted that nearly 70% of the consumer price for its beer brands comprises state taxes, while the current basic price to Telangana accounts for approximately 16% of the cost to consumers.

Global Cues 

Stocks in the Asia-Pacific region extended their decline on Friday amid a fall in the Wall Street future contracts ahead of the key US jobs data, which will shed light on the Federal Reserve’s next move.

Japanese markets opened lower with the benchmark Nikkei falling by 1.03%, or 408 points, to 39,200 as of 6:47 a.m. South Korea’s Kospi was up 50 points, or 0.60% at 8,279. Future contracts in Mainland China pointed to a negative start, while those in Hong Kong hinted higher open.

Stock markets in the US were closed on Thursday to observe a national day of mourning for former President Jimmy Carter. 

Emerging market equities entered a correction after declining by more than 10% from a high in October, according to Bloomberg, indicating increased volatility that analysts have warned.

Meanwhile, the US bond market halted a selloff on Thursday, and several officials said that the Fed would likely hold interest rates at current levels for an extended period, Bloomberg said.

The dollar index—which tracks the greenback’s performance against a basket of 10 leading global currencies—was flat at 109.18.

The key focus on Friday will be the US payroll data, which is expected to show a slowdown in hiring. Median estimates for the figures forecast that 1.65 lakh jobs were added to the US economy in December. 

Brazil’s CPI, Canada’s unemployment figures, and Japan’s household spending data will be in focus during the session.

Crude oil prices advanced higher for the second consecutive day. The Brent crude was trading 0.39% higher at $77.22 a barrel as of 7:00 a.m. IST, and the West Texas Intermediate was up 0.42% at $74.23.

Money Market Update

The Indian rupee closed one paise weaker against the dollar at 85.86 on Thursday. It hit a record low of 85.94 against the greenback during the day.

Rupee had opened four paise weaker to open at an all time low, according to Bloomberg. It closed at 85.85 on Wednesday.

. Read more on Markets by NDTV Profit.For the Nifty, the immediate resistance lies at the upper end of the falling channel around 23,700–23,750.  Read MoreMarkets, Business, Notifications 

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