Mumbai: The stock market witnessed a sharp sell-off on Tuesday, due to which the Nifty lost 353 points to close at 25,232.50 level. Amid the weakness of global
signals and trade-related tensions, the selling of institutional investors kept the pressure on the market. In terms of traders, the need for caution and strict risk management is being said in the market at the moment. According to the analyst, the movement of the Nifty on 21 January is going to depend on the important support zone. On 21 January, the Nifty may fluctuate and remain under pressure. Unless the index stays above 25,400—25,500, the trend is likely to remain weak.
SBI Securities on Nifty
According to Sudeep Shah, head of technical and derivatives research at SBI Securities, the range of 25,370—25,400 has become an immediate resistance for the Nifty. He said that this zone has now become an important supply area and as long as the Nifty remains below 25,400, the market sentiment may remain weak. According to him, if the Nifty fails to cross this level, the decline may continue and 25,080 will be the next support. After breaking below 25,080, the Nifty may slip to 24,900 in the short term. Overall, he described the trend as bearish and said that without a strong breakout above 25,400 there would be no signs of any solid recovery.
Nifty forecast
Rupak Dey, senior technical analyst at LKP Securities, said that amidst the global tensions related to trade, the bears have again taken hold of the market and bullish investors have gone to the margins. He said that the Nifty is constantly breaking support and strong institutional selling is being seen. The indicators are still in a bearish crossover and are approaching the oversold zone. According to Rupak Day, immediate support is visible around 25,100—25,150 and if this level holds up, a mild recovery is possible.
Nifty Outlook
According to Bajaj Broking Research, the Nifty has formed a large bearish candle with lower highs and lower lows, pointing to the extension of the downtrend. The report states that the Nifty broke the critical low of 25,473 on 12 January and the decline reached close to 25,162 of the 200-day EMA. Further, the brokerage warned that if the Nifty stays below the 200-day EMA, the decline could extend to 25,000. Whereas upwards the level of 25,500 will be strong resistance.
Angel One’s opinion on Nifty
Angel One’s equity technical analyst Rajesh Bhosale said that the Nifty has lost more than 1,100 points in the last 15 days and due to the breakdown of many important support levels, the weakness may persist. He said that the RSI is in the oversold zone, but in the midst of such a sharp and extensive sell-off, the rush to catch the bottom right now will not be right. According to him, 25,100—25,000 is important support for the Nifty, while the scope of 25,500—25,600 will remain a severe obstacle.
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